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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Mark   😊 😞
Number: of 15054 
Subject: Re: Berkshire and Tariffs
Date: 04/03/2025 11:24 PM
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OK, no argument from me. That said, the American consumer will have to understand that goods, whether from abroad (including tariffs) or made domestically, will now cost considerably more.

Let's say BMW makes a car in Germany and it is priced at $40,000. If there is a new 25% tariff, then $10,000 must be paid to import that car. Now if BMW raises the price of that car to $50,000 then the US consumer (at least the ones who will still buy that car) pays the $10k tariff. 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. For commodities, I suspect the prices will rapidly adjust as they always are constantly adjusting for myriad other things.
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