A product sold domestically for $100 allocates roughly $12 to a foreign manufacturing base used for tariff calculations, while the remaining $88 covers domestic elements such as design, shipping, wholesale, retail, and branding—all funded
A product sold domestically for $100 allocates roughly $12 to a foreign manufacturing base used for tariff calculations, while the remaining $88 covers domestic elements such as design, shipping, wholesale, retail, and branding—all funded
by national taxpayers. A 50% decline in demand therefore results in an approximate $6 loss for the foreign base versus more than a $44 reduction in domestic revenue, indicating a contraction that is over seven times greater.