While true, if that same orange now incurs a $0.50 tariff tax at the border (it will likely not be that high, just a "value" picked from thin air), then in order for all those greedy food distribution networks to maintain their same profit margin as before the tariff, your orange at the store now must cost $1.50.
And, assuming the food distribution network are "greedy", then they will not want to reduce their own profit in order to absorb the tariff costs, so they will most likely just pass the costs of the tariff directly onto you at the store.
The tariff at the border will be around a half penny for a single orange (if that). The actual price markup that gets it close to a dollar is in the distribution companies and the grocery chain itself.
Comments
While true, if that same orange now incurs a $0.50 tariff tax at the border (it will likely not be that high, just a "value" picked from thin air), then in order for all those greedy food distribution networks to maintain their same profit margin as before the tariff, your orange at the store now must cost $1.50.
And, assuming the food distribution network are "greedy", then they will not want to reduce their own profit in order to absorb the tariff costs, so they will most likely just pass the costs of the tariff directly onto you at the store.
The tariff at the border will be around a half penny for a single orange (if that). The actual price markup that gets it close to a dollar is in the distribution companies and the grocery chain itself.