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)