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TSA thinks companies will give up profits when they can just blame Trump for raising prices as much as they want.
Why Critics Miss the Bigger Picture in America's Economic Renewal---A thread for "real world finance guys"
In a landmark announcement on July 22, 2025, President Donald Trump unveiled a historic trade deal with Japan, securing $550 billion in Japanese investments into the United States—the largest such commitment ever made. This agreement, which includes reciprocal 15% tariffs on Japanese exports to the U.S., exemplifies a bold approach to trade policy that prioritizes American manufacturing and long-term growth.
Yet, amid the cheers from markets and industry leaders, a chorus of naysayers persists, warning that tariffs will inevitably drive up costs for American consumers and businesses, stifling economic progress. While their concerns warrant consideration, this pessimistic view overlooks critical dynamics in global trade, underestimating the adaptive responses of exporters and the cascading benefits of re-shoring manufacturing.
Far from a zero-sum burden, tariffs—when strategically applied—represent a superior framework for revitalizing the American economy, fostering innovation, and ensuring sustained prosperity.
The Conventional Critique: Tariffs as a Tax on Americans
Critics of tariffs, including many economists and think tanks, argue that these import duties act primarily as a regressive tax on U.S. importers and consumers. They point to analyses showing that, in aggregate, tariffs are often passed through to domestic buyers, raising prices on everything from electronics to automobiles.
For instance, studies of the U.S.-China trade tensions from 2018 onward suggest that American firms and households bore much of the cost, with little evidence of foreign exporters absorbing the hit. This perspective assumes a static market where exporters hold all the leverage, forcing deficit nations like the U.S. to shoulder the full burden.
In this narrative, tariffs equate to self-inflicted wounds: higher input costs for manufacturers, inflated retail prices for families, and potential inflationary pressures that could erode purchasing power. It's a tidy, textbook argument—one that resonates in academic circles and media echo chambers. But it falters under real-world scrutiny.
The Overlooked Reality: Exporters Adapt and Absorb Costs
A fundamental flaw in the critics' premise is the assumption that trade surplus nations will simply pass tariff costs onto American buyers. Data tells a more nuanced story. In sectors like steel during the 2018 tariffs, foreign exporters significantly lowered their pre-tariff prices to maintain compe iveness, effectively absorbing much of the burden.
This isn't an anomaly; it's a rational response to market pressures. When faced with tariffs, exporters confront a choice: raise prices and risk losing market share, or find efficiencies to offset the duties. Exporters often cut into margins, streamline supply chains, or invest in productivity gains to stay viable.
In the context of the Japan deal, this dynamic is already evident: Japanese firms, keen to protect their foothold in the U.S. auto market, are incentivized to avoid price hikes that could cede ground to rivals. Many Japanese cars are already manufactured in the U.S., and this agreement accelerates that trend.
Moreover, broader economic policies amplify these offsets. The Trump administration's energy agenda—emphasizing deregulation and expanded domestic production—lowers input costs like fuel and electricity, providing a natural hedge against any residual tariff impacts.
The Real Win: Reshoring Manufacturing and Multi-Order Benefits
Where the naysayers' theory truly falls short is in its myopic focus on short-term price effects, dismissing the profound second- and third-order benefits of tariffs. The Japan deal illustrates this: by tying tariff relief to massive investments in U.S. infrastructure, semiconductors, and manufacturing, it transforms potential trade friction into a catalyst for growth.
These ripple effects are transformative: reshored manufacturing spurs innovation, revitalizes communities, increases wages, and narrows trade deficits. On balance, the upside—a renewed American industrial base—outweighs isolated price bumps. Tariffs as tools for renewal position America for leadership. Critics' view is shortsighted; this dynamic theory prevails.
https://x.com/ChipActual/status/1947999405925130520
Lol "this dynamic theory prevails". Why? Because Trump said so?
I'm not sure he thinks anything at all. He's just building his daily filled text wall and declaring internet victory.
Why? You're watching it play out in real time. Toyota has had a 25% tariff on their cars coming to the US. On average they've raised prices a whopping $270 on certain Toyota and Lexus models. You're a smart real world finance guy...who's been eating the 25% tariff...the US consumer?
It's clear you don't understand the position of power the US is negotiating from. You're a short sighted simpleton who's demonstrated you have zero knowledge when it comes to the economy. You latch on to ty economists that confirm your bias and refuse to think outside your little dunce box.
omg ChumpDumper is still doing it
They're just all waiting for TACO. If TACO doesn't happen, they will jack up the prices and join the pile-on that's starting to happen to lame duck Trump.
You latch on to Trump and Trump bootlicks. That's literally all you do here. He's an idiot. They're idiots. You're an idiot.
They'll say they won't raise their prices loudly and then a few months down the road they'll raise them quietly.
It's hilarious watching you try to call me an idiot when I take you to the woodshed on a daily basis. You're such an idiot that you don't even realize how stupid I make you look.
Question pending real world finance guy.
Toyota has had a 25% tariff on their cars coming to the US. On average they've raised prices a whopping $270 on certain Toyota and Lexus models. You're a smart real world finance guy...who's been eating the rest of the 25% tariff?
Toyota doesn't have 25% percent profit margin on cars. They are not eating the cost. They will not sell the cars at a loss, dumbass.
Blake knows he's too stupid to answer and backed himself into a corner so not surprised he's avoiding this one.
While operating under a 25% tariff Toyota has raised their prices on average $270 on certain models. Who's been eating the rest of the 25% tariff? It hasn't been US consumers.
Why would shareholders agree to losing profits long term to make lame duck Trump look better in polls?
Spoiler alert: they won't.
Do you know how the future works? It means it's not today. It means it's not yesterday or before.
Next lesson we'll talk about what "long term" means.
"...STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Did you know the 25% tariff on Japanese autos has been in place since April 3rd?
Question pending real world finance guy.
Toyota has had a 25% tariff on their cars coming to the US since April. On average they've raised prices a whopping $270 on certain Toyota and Lexus models. You're a smart real world finance guy...who's been eating the rest of the 25% tariff? It hasn't been US consumers.
Walmart continues to lead on tariffs, further pressuring suppliers
Walmart is reportedly standing firm in its demands that Chinese suppliers absorb the costs of U.S. tariffs.
Bloomberg, citing sources with knowledge of the situation, said Walmart (WMT) is asking suppliers to reduce prices by up to 10% for every new round of tariffs, effectively shifting the financial burden onto manufacturers. Last month, Chinese officials met with Walmart executives to discuss the request, calling it irresponsible and unfair. Despite this, Walmart appears unfazed and has doubled down on its demands.
https://finance.yahoo.com/news/walma...142200780.html
Trump TACOs three months after imposing a 25% tariff.
Three months is very short term for a nearly 90 year old company.
One by one they'll bend the knee for the privilege of doing business with the US
US and EU close in on 15% tariff deal
https://www.ft.com/content/460b7784-...d-dc9692d15e72
So TACO even from the original executive order tariff.
Trump bends the knee again.
You've been crying for higher taxes for a decade, what changed your mind?Bragging about raising taxes on Americans -- the biggest tax hike in US history
US importers and retailers will pass the cost along to consumers, it's inherently inflationary
To the extent that the added costs will tend to destroy demand for imports that are not readily replaceable, jobs will be lost and businesses will go bankrupt
We didn't want it to fund your secret police.
They took a wait and see approach because of TACO.
And they came out winning while American auto makers came out losing.
Way to go you ing s. MJGA!
Yeah, when Walmart ultimately raises their prices because of the tariffs, they'll show Trump how they tried their best to pressure the suppliers.Walmart continues to lead on tariffs, further pressuring suppliers
Walmart is reportedly standing firm in its demands that Chinese suppliers absorb the costs of U.S. tariffs.
Bloomberg, citing sources with knowledge of the situation, said Walmart (WMT) is asking suppliers to reduce prices by up to 10% for every new round of tariffs, effectively shifting the financial burden onto manufacturers. Last month, Chinese officials met with Walmart executives to discuss the request, calling it irresponsible and unfair. Despite this, Walmart appears unfazed and has doubled down on its demands.
https://finance.yahoo.com/news/walma...142200780.html
Why do you keep looking at what's currently happening when the rest of us are talking about what is going to happen if these tariffs stay in effect?
I've lost track of how many times you've dodged a simple question. Stop being a pussy. Who's been eating the rest of the 25% tariff? It hasn't been US consumers.
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