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To: CWOJackson
How is it NOT being passed to you now? you don't think everyone else puts a tariff on our products?

When a company wants to penetrate a market that has high foreign tariffs they lower the price of their widget. How do you think they make up the difference? They raise their prices in higher income markets that already have a demand for the widget. In effect you pay higher prices because of the tariffs other country's impose on our products.
173 posted on 07/28/2003 9:21:52 PM PDT by RockyMtnMan
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To: RockyMtnMan
Yes, that would explain how the price of the Ford Tarus dropped so dramatically in 1990 after the government imposed tariffs on it's main competition (the Accord and Camry) to level the playing field.

No, that's right. The prices of the Accord and Camry just went up, the quality of the Tarus still remained low (compared to the price being demanded) and the government didn't cut corporate taxes because of the tariffs they were collecting on the Accords and Camrys.

183 posted on 07/28/2003 9:28:23 PM PDT by CWOJackson
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