Even the administration admits that it will make things more expensive. The “passthrough” of 0.25 in their equation means Americans will pay 25% of the tariff amount. And it’s in the denominator, so if it was 0, the (limit of the) tariff rate would go to infinity, which means no amount of tariff would be effective.
Even the administration admits that it will make things more expensive. The “passthrough” of 0.25 in their equation means Americans will pay 25% of the tariff amount. And it’s in the denominator, so if it was 0, the (limit of the) tariff rate would go to infinity, which means no amount of tariff would be effective.