The Budget Fashionista

I think I’d be happy if a lot of foreign companies took the extra money and used it to pay their employees living salaries.

I wonder how it’s going to affect mid-priced shoes (e.g. $50-$100).  I would guess that some on the lower limit there would drop prices to avoid the tariff.

Great post! I actually heard a piece on NPR about this over the summer before the bill was introduced. http://www.npr.org/templates/story/story.php?storyId=10991519
It’s surprising that the congressman they spoke to in this piece placed the odds of the bill passing at 50-50. I guess that’s just our political system.

TBF, can you really see retailers not passing on the savings to consumers? If markets work correctly, shoe prices would have to go down if the tariff were eliminated because eventually one shoe retailer would undercut prices to gain more market share and every other retailer would have to follow or lose business. It seems like there are too many retailers to maintain a cartel-like price fix. Shoe producers overseas couldn’t maintain a post-tariff markup for the same reason. Markets working correctly is a big “If” though.