this post was submitted on 10 Mar 2025
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25% tariffs means businesses need to raise prices ~33% to keep same profits
If I was selling lemonade for $1
Tariff would be 25 cents
Sell $1, pay 25 cents for tariff, make 75 cents per lemonade
If I raised my price to $1.33
Tariff would be 33 cents
Sell $1.33, pay 33 cents for tariff, make $1 per lemonade
A 25% tariff means ~33% higher prices if the company's can get people to pay it.
So should be 33% instead of 10%