Dealmakers Trump Economists In Predicting The Trajectory Of Tariffs

To: editet@timesgroup.com

Subject: Alternative to Dollar Trump | Letter to the Editor

Dear Editor of Economic Times:

This has reference to op-ed entitled Alternative to Dollar Trump by T. K. Arun in Economic Times.

As a career sales professional in my past corporate life and a businessman in my current entrepreneurial journey, I find no “idiocy” in Stephen Miran’s belief that “exporters pay for the tariffs levied on imports”. As the old Lotto Germany billboard ad said, “Es tritt mehr als Sie denken” (“It happens more often than you think”.)

Let’s take my industry, for example. I know my sales realization when I sell to USA versus other countries. Even after absorbing tariffs in the low teens, I’d make more money selling to USA than any other market in the world. So, as an exporter, I’d rather pay tariffs due on American importers than lose the lucrative American market. (Obviously this won’t work if tariffs are 145%).

Since there’s no Trump Tariff on my industry (knock on wood!), you might consider my example hypothetical.

So let me take a few examples from other industries where Trump Tariffs is real.

Walmart (American Importer) has asked its Chinese suppliers (Overseas Exporters) to “adjust” their prices (Source: Nikkei Asia).
US auto majors and garment companies have made similar “requests” to their Indian suppliers (Source: Economic Times).

Though framed euphemistically as “requests for adjustment” by the media, their intent is unmistakably clear: American importers are asking overseas exporters to bear the brunt of US tariffs by compromising on their margins. While exporters can theoretically refuse, if they push back too hard in practice, they risk losing business from the world’s largest consumer market.

The results of these adjustment requests have already started pouring in. According to Mashable, Sony just increased the price of its PlayStation 5 gaming console in Europe, the UK, Australia, and New Zealand. But its prices in USA haven’t changed.

Then there are other shady developments. For example, according to the section titled Chinese suppliers are offering U.S. Amazon sellers a tariff solution, but it’s not legal of the Fortune Tech newsletter dated 14 April 2025, Chinese exporters have offered to underinvoice their exports to buyers in USA in order to reduce the impact of tariffs.

While tariffs have theoretical underpinnings in economics, the above real-world outcomes show that professionals in tech, investment banking and private equity are better equipped to predict the fallout of tariff policies in actual practice. Being in deal-intensive industries, they make deals day in, day out, and understand the art of the deal like no sinecure economist ever can.

And no prizes for guessing which American President’s administration is full of such professionals!

Thanks and Regards.