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JT45242

(3,487 posts)
8. The stockholders should and will go after any CEO who "eats the tariffs"
Sun May 18, 2025, 02:59 PM
May 18

The corporate executive have a fiduciary and 'moral' obligation to maximize corporate wealth.

Eating tariffs and not passing them along to consumers is a violation of that responsibility. They may choose to absorb a tariff for a month so that they do not raise prices too quickly or phase in the cost of tariffs over a couple of months to minimize consumer backlash but they will not, should not, and could not eat those tariffs long term.

The other way to combat the tariffs will be more shrinkflation. Smaller packages for same price

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