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Joined 2 years ago
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Cake day: August 14th, 2023

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  • 25% tariffs means businesses need to raise prices ~33% to keep same profits

    If I was selling lemonade for $1

    Tariff would be 25 cents

    Sell $1, pay 25 cents for tariff, make 75 cents per lemonade

    If I raised my price to $1.33

    Tariff would be 33 cents

    Sell $1.33, pay 33 cents for tariff, make $1 per lemonade

    A 25% tariff means ~33% higher prices if the company’s can get people to pay it.

    So should be 33% instead of 10%