What integration currently looks like in the auto industry:
Clearly, these tariffs are highly disruptive, and likely to drive up prices for consumers.
Interestingly, tariffs in the retail sector might well be rather painless. I have seen estimates
that a pair of sneakers made in Asia, might go from 100 USD to 110 USD. Peanuts; who would
even notice. That is because the actual cost of the good coming out of an Asian
facility is only a small part of the end price of the product, shipped, advertized and sold
at the mall. There is a 40% tariff on 1/4 of the end price...
Where the new team at the White House might be in for a surprise is how expensive
collecting tariffs could get. Ah, bureacratic overhead! This is what killed the Trudeau
bureacracy, putting everything on computers that need to be programmed and kept up.
It is endless and merciless, and there are very powerful unions involved...
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