Myth: A border tax of 20% will not translate to a 20% hike in retail pricing . . . . not even close. Here is why.
We are talking about an import tax on specific items. They are calling it a "border tax."
Let's cut to the chase:
Let's say ConAir builds a plant in Mexico, but, not all ConAir product will be built in Mexico, which gives the company a retail solution to it's obvious sales problem. All the company needs to do is raise the price on its other product line(s) in an effort to marginalize the cost of the items coming into this country from Mexico. If the American ConAir stores sold 10 other cooling/solar product, and, for the sake of simplicity, these sales were all equal in volume, an increase of 2% per retail category, would take care of the problem. We can argue the math, here, but surely you get the point.
Take Ford. Lets say their F 150 is built in Mexico, but the Taurus, the very popular Mustang, the Ford Expedition, the very popular Fusion and Focus are all built in the States. The solution is, again, obvious . . . . jack up the retail by a percentage (maybe less) per items sold, and, you have the border tax completely marginalized.
