[throw0101a]

> Even if the exporters are not directly paying the tariffs, their chips will cost consumers more, reducing the demand. So no; they’re not getting the same money.

So the higher cost of cars—because they have chips in them that cost more and that is passed onto drivers—will stop people from buying cars?

The higher cost of microwaves will stop people from buying microwaves? And stop buying stoves? And refrigerators?

People will buy fewer smartphones? Businesses will buy fewer laptops and servers?

[Spivak]

Depending on how bad the hike is, maybe? You're essentially arguing that consumers are unresponsive to price increases which just isn't true.

If the hike is bad enough we might see a return to kitchen electrics that don't use microcontrollers at all. Unironically good news if you want physical buttons again.

[throw0101a]

> Depending on how bad the hike is, maybe? You're essentially arguing that consumers are unresponsive to price increases which just isn't true.

I'm arguing there are items that are less elastic when it comes to prices:

* https://www.investopedia.com/terms/p/priceelasticity.asp

Someone lives in the US, which is addicted to sprawling, car-centric suburbs. Car prices go up. What are they going to do? Walk? Bike? Take public transit? (Which is one of the arguments for (so-called) 15 minutes cities: it gives people more freedom to choose their mode of transportation instead of forcing one particular mode.)

Are you not going to buy a refrigerator when yours break down and food starts going bad?

While they can stretch out the depreciation/lifespan schedule, are business going to stop buying laptops and servers? If their (capex) costs go up, are the businesses going to eat that cost or pass it on to their customers?