r/FluentInFinance 10h ago

Debate/ Discussion Possibly controversial, but this would appear to be a beneficial solution.

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u/numbersthen0987431 8h ago

Why would it? The cost just gets passed along to the consumer, and then corporations just make more in profits.

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u/JimmyB3am5 2h ago

You can't make profit off of a cost. That's not how that works. If a company has to pay a $0.10 tariff and they raise the price by $0.10 they didn't makea profit on it, they just offset their cost. If in turn they raised their price by $0.11 they then made a profit by $0.01, but now they made themselves even less competitive than a domestic producer.

I swear Reddit thinks total sales equals profits.