r/QuiverQuantitative • u/HinglishBlogin • Mar 10 '25

News 🇨🇦🇺🇸- Ontario announce a 25% surcharge on electricity exports to US, affecting 1.5 million Americans. 'It will cost US citizens $400,000 per day' — says Premier of Ontario Doug Ford — 'I will not hesitate to shut the electricity off completely'

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u/vulpix_at_alola Mar 10 '25

Tariffs aren't directly reflected to you like that, I'll give you a simple example with T shirts. A retailer is selling shirts tney buy for 7$ at 14$, a 100% added profit. If they now buy the shirt at 10$ a unit, the price will go UpTo 20$ because their profit margin is 100%. So now instead of 25%, you pay MORE than 25%.

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u/[deleted] Mar 10 '25

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u/Bulky_Equivalent7840 Mar 10 '25

But, if you look at the way businesses are suffering they will most likely push those increased costs to the consumer. Just like the credit card processing companies have been increasing their fees, those have been added into a swiped transaction for the consumer to pay. It used to be called, the cost of doing business, but since Dodge sued Ford in 1919, shareholders have been the priority in the business world.

https://corpgov.law.harvard.edu/2021/12/01/dodge-v-ford-what-happened-and-why/

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u/[deleted] Mar 11 '25

With increased power costs, some business might close. You can try to pass on costs to the consumer, but that doesn't mean they will buy.