Don_Dickle to Explain Like I'm Five@lemmy.worldEnglish • 2 months agoELI5 How does a tariff against a major trading partner effect the common pleebs?message-square7fedilinkarrow-up117arrow-down11
arrow-up116arrow-down1message-squareELI5 How does a tariff against a major trading partner effect the common pleebs?Don_Dickle to Explain Like I'm Five@lemmy.worldEnglish • 2 months agomessage-square7fedilink
minus-square@YoFrodo@lemmy.worldlinkfedilinkEnglish15•edit-22 months agoLet’s say you want to sell lemonade for $1 per cup. Due to tariffs you must now pay 50 cents to sell a cup of lemonade. So what do you do about that? Do you: A. Take the profit loss and accept that while you still charge $1 you now only make 50 cents per cup B. Increase costs by 50 cents so your income per cup remains at $1.
Let’s say you want to sell lemonade for $1 per cup. Due to tariffs you must now pay 50 cents to sell a cup of lemonade. So what do you do about that?
Do you:
A. Take the profit loss and accept that while you still charge $1 you now only make 50 cents per cup
B. Increase costs by 50 cents so your income per cup remains at $1.