You think businesses as a rule can all survive a 15 to 100% surcharge on their products without running into liquidity issues?
You think businesses as a rule can all survive a 15 to 100% surcharge on their products without running into liquidity issues?
The stocks of major retailers haven't cratered, so maybe? You're going to have to present some figures rather than just asking rhetorical questions.
You have to present figures when you're arguing the hard-to-prove side of something not when it's plain obvious that business are not in a position to deal with such shocks in the market without having to reach for capital. This is not normal. Typical operating margins of business is anywhere from 5 to 20% with outliers in the digital domain but that's not the part that we are talking about here.
Anyway, you want figures, well, here are some figures:
https://marketrealist.com/why-did-700-bu/
I'm sure there are other sources, better ones, worse ones but they all tell roughly the same story: willy nilly tarrifs have a negative effect on one's ability to operate a business. Businesses like predictable, stable climates to operate in.
There’s a long way from businesses like predictable stable climates (and that ship has long sailed) and business won’t survive. There’s no reason to believe the latter is true.
At a guess you are not operating a business that adds value to real goods subject to overnight surprise tariffs then.
Those are a sunk cost at this point though. The business likely is better off having sold and got the money now - vs risking they will never get a refund.