No. of Recommendations: 4
But if BMW only raises the price to $45k, then half the tariff is paid by the US consumer, and half the tariff is paid by the German manufacturer. This will probably be the case for almost all non-commodity goods.
The margins on cars aren't very good. Maybe BMW's are better, but it is unlikely they have an extra $5K on a $40K vehicle they are willing to eat. That's true for most consumer products. A computer from Vietnam will have a 46% tariff. There's no way they can split the difference. They might eat a couple percent here and there, but rest assured you the consumer will be paying the rest.
If it were Birkin bags maybe it is different.
