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We'll pass Trump tariffs back as higher prices for Americans: German firm (www.newsweek.com)

submitted 1 week ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Summary

German engine maker Deutz said it will fully pass Trump’s new 20% tariffs on EU imports to American customers through price hikes.

The move underscores warnings that tariffs act as consumer taxes and could raise inflation.

Trump claimed the tariffs as necessary to combat trade imbalances and protect U.S. manufacturing. However, EU officials, including Ursula von der Leyen, pushed for zero-for-zero tariff deals, but Trump rejected them.

The EU plans retaliatory tariffs by mid-April. Economists and officials warn of recession risks and disrupted supply chains.

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[–] pc486 1 points 1 week ago

Why wouldn't a price that's too high to pay prevent a product from selling? If demand of a product goes from 10,000 units to 10 units from the price shift, then it's better to not develop and sell it. The rational move is to focus on the high end or custom-made products where you can have the margins necessary for low-volume to make sense. When it comes to low-end products, volume and throughput is the name of the game.

Want an example? How about this smart move by Framework stopping selling some of its cheapest laptops.