Kenneth Raposa

So let's pretend we're at Walmart. Everybody knows what Walmart is. And Walmart has to fill its warehouses with goods that you and I buy. And it's springtime. So of course, since the end of the holidays, they've been buying patio furniture and things like that. So they are calling up They're factories that they work with in South Asia, obviously, Southeast Asia and China.

And they're saying, I need 100,000 orders of this Adirondack, plastic Adirondack chair. Okay. Well, that plastic Adirondack chair used to cost $10 for Walmart to import. And now with tariffs, maybe it costs... Let's say all things being equal, it's 20%. So let's say now it costs 12, right? So 20% of 10, that's a $12 tariff. So Walmart might say, oh, that's too much money.

And they're saying, I need 100,000 orders of this Adirondack, plastic Adirondack chair. Okay. Well, that plastic Adirondack chair used to cost $10 for Walmart to import. And now with tariffs, maybe it costs... Let's say all things being equal, it's 20%. So let's say now it costs 12, right? So 20% of 10, that's a $12 tariff. So Walmart might say, oh, that's too much money.

And they're saying, I need 100,000 orders of this Adirondack, plastic Adirondack chair. Okay. Well, that plastic Adirondack chair used to cost $10 for Walmart to import. And now with tariffs, maybe it costs... Let's say all things being equal, it's 20%. So let's say now it costs 12, right? So 20% of 10, that's a $12 tariff. So Walmart might say, oh, that's too much money.

Actually, Walmart will say that because Walmart just wants things cheap. And Walmart's going to say, I don't want to pay that. And then the Chinese or the Asian company that makes that plastic adder on that chair is going to say, well, a deal's a deal. And then Walmart's going to say, well, instead of me importing 100,000, How about if I import 150,000 of them instead? Can you give me a deal?

Actually, Walmart will say that because Walmart just wants things cheap. And Walmart's going to say, I don't want to pay that. And then the Chinese or the Asian company that makes that plastic adder on that chair is going to say, well, a deal's a deal. And then Walmart's going to say, well, instead of me importing 100,000, How about if I import 150,000 of them instead? Can you give me a deal?

Actually, Walmart will say that because Walmart just wants things cheap. And Walmart's going to say, I don't want to pay that. And then the Chinese or the Asian company that makes that plastic adder on that chair is going to say, well, a deal's a deal. And then Walmart's going to say, well, instead of me importing 100,000, How about if I import 150,000 of them instead? Can you give me a deal?

Oh, yeah. Okay. I'll lower the price 10%, right? So, the tariff, in other words, what I'm trying to tell you is that $100 chair tariffed at 10%, just to make it very simple math, does not mean the chair costs $110, right? That's not what it means. Because of what I just explained to you, Walmart can set prices. Walmart can force its clients to lower prices.

Oh, yeah. Okay. I'll lower the price 10%, right? So, the tariff, in other words, what I'm trying to tell you is that $100 chair tariffed at 10%, just to make it very simple math, does not mean the chair costs $110, right? That's not what it means. Because of what I just explained to you, Walmart can set prices. Walmart can force its clients to lower prices.

Oh, yeah. Okay. I'll lower the price 10%, right? So, the tariff, in other words, what I'm trying to tell you is that $100 chair tariffed at 10%, just to make it very simple math, does not mean the chair costs $110, right? That's not what it means. Because of what I just explained to you, Walmart can set prices. Walmart can force its clients to lower prices.

They can also tell their clients, I'm going to buy more, increase volume. Can you lower price for that reason? So there's many ways that the price change. So it's not a direct percent. It's not like $100 becomes $10 more out of your pocket. That's not how it works. But not every company is Walmart. Not every company is Walmart. So now let's look at the small company.

They can also tell their clients, I'm going to buy more, increase volume. Can you lower price for that reason? So there's many ways that the price change. So it's not a direct percent. It's not like $100 becomes $10 more out of your pocket. That's not how it works. But not every company is Walmart. Not every company is Walmart. So now let's look at the small company.

They can also tell their clients, I'm going to buy more, increase volume. Can you lower price for that reason? So there's many ways that the price change. So it's not a direct percent. It's not like $100 becomes $10 more out of your pocket. That's not how it works. But not every company is Walmart. Not every company is Walmart. So now let's look at the small company.

Let's go back to you and I. You and I have been at our widget-making factory. We need to import a whole bunch of- We're widget kings, buddy. That's right. We're the widget.

Let's go back to you and I. You and I have been at our widget-making factory. We need to import a whole bunch of- We're widget kings, buddy. That's right. We're the widget.

Let's go back to you and I. You and I have been at our widget-making factory. We need to import a whole bunch of- We're widget kings, buddy. That's right. We're the widget.

We're a widget dynasty, man. And we got to import some things from- From, let's not say Mexico, because that free trade deal looks like it's been untouched, except for steel. We're going to import some stuff from Vietnam. And it used to be 3.5% duty. And now it's a 46% duty. And that was $100 good. So now for us, it's going to be a problem because we're a smaller business.

We're a widget dynasty, man. And we got to import some things from- From, let's not say Mexico, because that free trade deal looks like it's been untouched, except for steel. We're going to import some stuff from Vietnam. And it used to be 3.5% duty. And now it's a 46% duty. And that was $100 good. So now for us, it's going to be a problem because we're a smaller business.

We're a widget dynasty, man. And we got to import some things from- From, let's not say Mexico, because that free trade deal looks like it's been untouched, except for steel. We're going to import some stuff from Vietnam. And it used to be 3.5% duty. And now it's a 46% duty. And that was $100 good. So now for us, it's going to be a problem because we're a smaller business.

And we're not going to be able to make that kind of deal with our supplier. So we're going to have to be very creative. We might have to say, oh, no, I don't have the money to do this. at the moment, so I'm in trouble. That is very possible.