Post #50430 by PinotPete on the US Policy board

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How does the foreign producer pay the tax?

On this point, it would be interesting to see what percentage of imports to the US have more than just a tiny amount of elasticity. Which products have such a high mark-up that the producer can afford to eat a percentage of the product's production without deleterious effects to the business?

We have heard about certain businesses that have only a 1-3% profit margin. Are these simply anomalous? Have foreign producers been able to jack up prices for them to take their (quarter or whatever) share of the tariff?

Pete

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