Title: What Are Tariffs and How Do They Affect Your Business? - ProfiTrust
Headings: What Are Tariffs and How Do They Affect Your Business?
What Are Tariffs and How Do They Affect Your Business?
What Are Tariffs?
Who Pays a Tariff, and Who Gets the Money?
Why Do Countries Impose Tariffs?
What Are Some Different Types of Tariff?
What Is the Difference Between a Tariff and a Tax?
What are the Risks of Tariffs?
How Do Tariffs Affect Businesses?
How Do Tariffs Affect Small Businesses?
Tariffs can hurt small businesses.
How do Tariffs Affect Manufacturers?
How Do Tariffs Affect Retailers?
How Do Tariffs Affect Businesses in New Industries?
Tariffs can benefit some domestic companies operating in new industries.
How Do Tariffs Affect Consumers?
Tariffs can benefit domestic consumers (long term)
How Do Tariffs Affect Workers?
How Do Tariffs Affect Businesses in Strategic Industries
How Are Tariffs Affected By Politics?
What are Protective Tariffs?
Are the US and China in a Trade War?
Is the US in a Trade War with Any Other Countries?
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Content: Domestic manufacturers can gain a comparative advantage from this. Let’s say a US clothing manufacturer makes jeans at a cost price of $10 per pair, and a Chinese clothing manufacturer makes jeans at a cost price of $8.50 per pair. A US clothing retailer is incentivized to purchase jeans from the Chinese company, even with a 10 percent tariff that raises the price to $9.35. Raise tariffs on imported clothing to 25 percent, and suddenly the Chinese jeans cost $10.63. The US clothing retailer is thus incentivized to purchase jeans from the US clothing manufacturer. Tariffs can hurt domestic manufacturers who source materials from abroad. Manufacturers sometimes need to source parts and materials from abroad. If a domestic manufacturer finds a cheap overseas supplier for a particular component, this can significantly reduce its production costs. Put a tariff on imports of this component, and production costs will rise. In some situations, this could result in domestic manufacturers being unable to compete with foreign manufacturers.