minus-squareYoFrodo@lemmy.worldtoExplain Like I'm Five@lemmy.world•ELI5 How does a tariff against a major trading partner effect the common pleebs?linkfedilinkEnglisharrow-up16·edit-225 days agoLet’s say you want to sell lemonade for $1 per cup. Due to tariffs you must now pay 50 cents to sell a cup of lemonade. So what do you do about that? Do you: A. Take the profit loss and accept that while you still charge $1 you now only make 50 cents per cup B. Increase costs by 50 cents so your income per cup remains at $1. linkfedilink
Let’s say you want to sell lemonade for $1 per cup. Due to tariffs you must now pay 50 cents to sell a cup of lemonade. So what do you do about that?
Do you:
A. Take the profit loss and accept that while you still charge $1 you now only make 50 cents per cup
B. Increase costs by 50 cents so your income per cup remains at $1.