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by rsynnott 409 days ago
> Sellers with no tariffs will just increase prices to pad profits if they’re given an opportunity to let Amazon pin it on tariffs

Well, realistically they'll do that _anyway_. If you decrease price competition, prices go up. That is the order of things.

1 comments

A lot of things go counter to economic theory. If you’re an American company used to selling 30% above Chinese competitors, you likely can’t ramp up production quickly or will hesitate to make the decision but will likely increase your prices simply because you can and partly because you’re used to the charging x% over Chinese goods. You may even feel being price competitive with China lessens your perceived value, quality, etc. in the consumer’s minds.