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<blockquote data-quote="spokey9" data-source="post: 8884267" data-attributes="member: 685744">The retailer isn&#039;t getting more profit.Simplified example:You buy candy bars for $1 each from walmart to sell at the public park for $1.50. Now there&#039;s a 25% Walmart tariff because of blue smocks the employees wear(a ridiculous example but it&#039;s a behavior that is frowned upon in the example). Now you can keep on buying from walmart and accept reduction in profit or raise your price to $1.75 which will lead to fewer candy bars sold by you. Either way your candy bar business has suffered.Or you can find a new source for candy bars to maintain your margins and keep your prices the same. Which leads to walmart taking a hit in their sales. Now you have leverage to discuss ditching the blue smocks. Even just the threat of the 25% walmart tariff would be enough to begin talks about the blue smock. The 25% tariff is the same principle as taxes aimed at curbing behaviors like cigarette taxes. It&#039;s just leverage to get the Mexican government to quit turning a blind eye to problems that they enable</blockquote>

[QUOTE="spokey9, post: 8884267, member: 685744"] The retailer isn't getting more profit. Simplified example: You buy candy bars for $1 each from walmart to sell at the public park for $1.50. Now there's a 25% Walmart tariff because of blue smocks the employees wear(a ridiculous example but it's a behavior that is frowned upon in the example). Now you can keep on buying from walmart and accept reduction in profit or raise your price to $1.75 which will lead to fewer candy bars sold by you. Either way your candy bar business has suffered. Or you can find a new source for candy bars to maintain your margins and keep your prices the same. Which leads to walmart taking a hit in their sales. Now you have leverage to discuss ditching the blue smocks. Even just the threat of the 25% walmart tariff would be enough to begin talks about the blue smock. The 25% tariff is the same principle as taxes aimed at curbing behaviors like cigarette taxes. It's just leverage to get the Mexican government to quit turning a blind eye to problems that they enable [/QUOTE]

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