Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
But, as the original comment suggested, it doesn’t really matter.
If every other cast iron pan goes up 15% in price, what do you think Lodge will do?
keep their price the same, see modest relative increase in market share with a demand for investment in additional production, knowing full well the tariffs aren’t going to be permanent leaving them over-invested in production whenever they drop the tariffs.
Also raise their prices by 15%, immediately show increased revenue at no additional cost to shareholders next quarter. CEO gets massive bonus.
That’s my understanding as well.
But, as the original comment suggested, it doesn’t really matter.
If every other cast iron pan goes up 15% in price, what do you think Lodge will do?
keep their price the same, see modest relative increase in market share with a demand for investment in additional production, knowing full well the tariffs aren’t going to be permanent leaving them over-invested in production whenever they drop the tariffs.
Also raise their prices by 15%, immediately show increased revenue at no additional cost to shareholders next quarter. CEO gets massive bonus.