this post was submitted on 17 Mar 2025
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Leopards Ate My Face

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[–] merdaverse 20 points 23 hours ago* (last edited 23 hours ago) (1 children)

Not necessarily: the company can choose to absorb part or all the tariff, since the demand would drop at the higher price anyway, and they might make more overall profit at a lower margin per item. But generally yes, most of the cost will be passed on to the consumer and prices will increase on average.

Example:

[–] [email protected] 8 points 21 hours ago

found the economics student