Make Me Smart How are companies handling tariffs? Exactly like we predicted
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May 5, 2025 Companies are navigating tariffs by raising prices rather than relocating production back to the U.S., as revealed by a Dallas Federal Reserve survey. The impact on small businesses is significant, highlighting challenges amid rising costs. On a different note, the Met Gala will celebrate black dandyism, showcasing emerging black designers and raising funds for the Costume Institute. Meanwhile, a comedic twist connects a public television movie to a presidential tweet, critiquing the current state of tariff discussions.
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Companies Mostly Pass Tariffs On
- Most companies respond to tariffs by passing increased costs to consumers rather than reshoring production.
- Only a small minority of companies are relocating manufacturing and services back to the U.S.
Bow Tie Shop Tariff Story
- A Brooklyn bow tie shop owner sources clasps from Hong Kong and faced tripled costs due to tariffs.
- He chose to absorb costs temporarily rather than raise prices, questioning business sustainability under tariffs.
Deportation Is Financially Costly
- The government pays about $17,000 on average to deport an illegal alien, making mass deportation financially unfeasible.
- Programs encouraging voluntary self-deportation aim to reduce these high costs amid fears and practical barriers.