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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: sykesix 🐝🐝  😊 😞
Number: of 15055 
Subject: Re: Berkshire and Tariffs
Date: 04/04/2025 12:47 AM
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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.
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