Fixed.
So when they go to the car lot, thinking they are buying a US car, they’ll just see a higher price tag, not that they’re paying an extra $800 due to the 34% made in Mexico parts. Or when they buy a fan, they just see an extra 30% on the price, not that it was assembled in Mexico.
US consumers will pay the price, just like every ‘tax’ on corporations are paid by the customers. Just another shell game.
I’m not disagreeing with the strategy, I think that more companies are concerned about tag price, and will shift production rather quickly if a tariff goes into effect, which will cost Mexico hundreds of billions. If they were even slightly economically savvy, they’d know exactly what this entails and will be making negotiations on the back channels to try to come up with alternatives.
As I said in the first post, it is just the opening salvos; Mexico could build the wall rather cheaply, or they can see just how much it could cost them.