Correct. I just this morning updated our pricing on thousands of items, at exactly the additional 10% tariff adder that we received from our importers. That's how this thing works with China, Trump (or whoever) says we (the US) are raising our tariff 10% on the declared cost, China in turn raises our prices from them the exact same amount. I'm not being sarcastic here because I think a lot of folks don't understand how it works because they don't make a boring living out of it like I do.
Most of the people in this country think that the US adding 10% tariffs on China decreases their profits because they have to eat it. Thus putting pressure on them to do what Trump wants. Not how it works at all.
The Chinese companies take any and all tariffs from the US and add them to their price. That's how we have to eat it. Trump's intent behind this is that China theoretically has to keep increasing its prices to us until those prices become too high and people stop buying products (hurting their economy), or US companies turn production back to the US. That sounds like a great idea on the surface and it's why uneducated people and union members lean into it so hard as being a good thing.
The reality is that it does neither of those things. People in the US aren't going to stop buying Chinese goods because they can't, for reasons I've mentioned before. And for many of the same reasons production is not going to be moved back to the US. The infrastructure and the wages/costs associated are too great for that to happen. For instance where I work we buy a component related to trailer equipment from China and have for over 20 years (we have thousands of these sorts of things). Once the tariffs started into effect years ago we did our due diligence and looked for alternate sources in Vietnam and India. The problem is it takes years sometimes to get the process done. First you have to find sources, then give them blueprints, then you have to pay for all these people to tool up for samples. Then it can be 6 months to get a sample for review. Then there's months of expensive back and forth between them and our quality dept making sure everything's hunky dory, and then there's pricing to work out. Most of the time that price is even higher than the Chinese tariffed cost because China has their economies of scale dialed in perfectly. Even if the price is good, you still have to work out logistics...sea freight is way cheaper coming out of China because of volume. So you can see how it's not a matter of, "Welp, I guess we'll just pull everything out of China and go somewhere else." It can and does take years to setup and change suppliers and it's cost prohibitive because for safety and reliability reasons you can sell product that someone's pulling down the interstate at 80 mph and have it fall apart. It doesn't compute cost-wise.
So the path of least resistance is to keep buying from China, and when they up your price because Trump upped their price, you just keep passing that increase all the way down to guys like you and me in our living rooms. Now multiply that by everything in your daily life that comes from China. Which is just about everything you use and consume.
