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462 points JumpCrisscross | 1 comments | | HN request time: 0s | source
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jameslk ◴[] No.45078256[source]
> Repricing, though, isn’t as easy as changing a tag—in part because suppliers and big-box stores are engaged in an epic tussle over who will pay what.

> Retailers, including Lowe’s and Home Depot, buy Thompson Traders’ wares and set the retail price themselves. And they have been reluctant to pay Thompson Traders more.

It seems like this sort of scenario would benefit from some kind of risk protection, like insurance, or a futures market

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SpicyLemonZest ◴[] No.45078501[source]
I don't think it's an insurable risk. If you were trying to underwrite some "adverse effects of government regulation" policy in 2024, would a surprise 50% tariff on Indian exports have even entered your calculation?
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1. jameslk ◴[] No.45078543[source]
Perhaps in the short term but I wonder if that calculus changes as more time goes on with erratic tariff changes (which has technically been going on for years, just to a much lesser degree).

Is there a market need great enough for price stability to offset the risk? It seems tariff whiplash will be an ongoing problem