Prices can’t go below the cost of production and transport.
A lot of goods are on quite small margins. When the tariffs are bigger than the margin the product becomes uneconomic to ship to the US. This is what you’re seeing. There’s less demand for shipping because companies have halted shipments to the US.
Prices can’t go below the cost of production and transport.
A lot of goods are on quite small margins. When the tariffs are bigger than the margin the product becomes uneconomic to ship to the US. This is what you’re seeing. There’s less demand for shipping because companies have halted shipments to the US.
Unless they can no longer afford to warehouse them.
US isn’t the only market. Likely to see price drops in Europe when supply will outstrip demand, but still maintain a better margin that the US.
At least until production rates adjust.