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689 points taubek | 1 comments | | HN request time: 0s | source
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aimor ◴[] No.43633841[source]
Trying to summarize the summary for myself

From a $100 shoe that sells for $76:

- $24 goes overseas (22 cost, 2 freight)

- $8 goes to the US gov't (3 import, 2 Nike tax, 3 Footlocker tax)

- $33 goes to US employees or businesses (5 Nike marketing, 11 Nike expenses, 17 Footlocker expenses)

- $5 goes to Nike (11% return)

- $6 goes to Footlocker (8% return)

But now with 100% tariffs, it's a $100 shoe that sells for $100 (or a $132 shoe that sells for $100) and:

- $24 goes overseas (22 cost, 2 freight)

- $29 goes to the US gov't (22 import, 3 Nike tax, 4 Footlocker tax)

- $33 goes to US employees or businesses (5 Nike marketing, 11 Nike expenses, 17 Footlocker expenses)

- $7 goes to Nike (11% return, 7.15 exactly)

- $7 goes to Footlocker (8% return, 7.45 exactly)

And if a US shoemaker wanted to undercut the import, a Made in USA shoe that sells for $100:

- $7+ goes to the US gov't (? shoemaker tax, 3 Nike tax, 4 Footlocker tax)

- $79 goes to US employees or businesses (46 to shoemaker, 5 Nike marketing, 11 Nike expenses, 17 Footlocker expenses)

- $7 goes to Nike (11% return, 7.15 exactly)

- $7 goes to Footlocker (8% return, 7.45 exactly)

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SV_BubbleTime ◴[] No.43634868[source]
Is there a reason, be-it special buildings, tools, skills that shoes can not be made in the US to avoid the tariffs?

If Nike shoes exceed the cost of domestically produced shoes, isn’t that… like… kind of the point?

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1. rsoto2 ◴[] No.43638109[source]
Every country has optimized their own economy so it's incredibly cheap for us to import shoes, or it was. Now it is not, so sure we could try to make some cheap shoes here. But now we have to make cheap shoes, grow cheap citrus veggies, make cheap computer chips, make cheap needles etc etc.

How much capacity do you think the US has to manufacture these things? and what about the supplies?