Tariffs Don’t Disappear—They Devour

EDITOR'S NOTES

The original article — “Tariffs Won’t Ever Make American Businesses ‘Absorb Costs’” by Vincent Cook, published at Mises Wire on September 24, 2025 — is a technically heavy but crucial read. It cuts deep into the dangerous narrative that U.S. firms can just “absorb” the cost of tariffs without long-term damage.

If that sounds dry, stick with me — because buried inside this economic jargon is a reality that impacts your job, your savings, your cost of living, and your personal freedom. In this commentary, I’m going to unpack what Cook gets right, where the narrative falls short, and how the state uses trade policy as a smokescreen for deeper economic manipulation.

Derek Wolfe Sep 25, 25

Tariffs Are Taxes with a Suit On

Let’s set the stage: after years of “Bidenflation” and hollowed-out real wages, consumers are strapped and skittish. Businesses, caught in this squeeze, are told they have to “absorb costs” from tariffs—aka eat the tax and smile.

Some outlets (like Breitbart’s Business Digest) trumpet this as proof of patriotic sacrifice by American firms. Nonsense. In the real world, no business can absorb costs indefinitely unless it plans to commit economic suicide.

Tariffs are indirect taxes. Period. They raise the cost of doing business. If a firm doesn’t pass those costs onto consumers (via higher prices), they’re either burning through reserves, cutting workers, or mortgaging their future. There’s no magic option C.

Why “Cost Absorption” is a Lie

Here’s what’s really happening:

Tariffs distort the supply curve — shifting it upward. This isn’t just academic scribbling on a whiteboard. It means fewer goods produced at higher prices.
Consumers are price-sensitive — meaning even small price hikes lead to big drops in purchases. This is why prices haven’t exploded yet — not because tariffs are harmless, but because demand has cratered.
Firms lose volume and revenue — even as they try to hold prices steady. They’re not absorbing costs; they’re bleeding out slowly while the media plays nursemaid.

What Cook lays out in that chart-heavy argument is this: firms can’t just shrug off rising costs. Investors flee, margins collapse, and the whole edifice starts to crumble. In the long run, only politically connected behemoths with Washington protection will survive.

What This Means For You

When businesses “cut costs,” it’s not some bloodless Excel maneuver. It means:

Layoffs — workers dumped to keep shareholders breathing.
Fewer imports — reduced product choice, lower quality, or both.
Higher domestic prices — as people are herded into local monopolies.
Stagnation — fewer new businesses as capital flees risky ventures.

Meanwhile, the state walks away with its tariff revenue, the media declares inflation “tamed,” and the public is none the wiser. It’s a shell game — and you’re the mark.

The Bigger Picture: Monetary Policy Won’t Save You

The Fed can’t paper over this with rate cuts. Loose money only raises all prices, including inputs. That doesn’t ease the tariff pain—it multiplies it. You’re not fighting inflation anymore; you’re trapped between rising costs and collapsing demand.

Let me be blunt: if you believe tariffs can be absorbed, you probably also believe the TSA keeps you safe and the Fed fights inflation. Wake up. These systems protect themselves first, and you last.

The Next Phase of the Scam

Here’s what to watch for:

Inventory drain — Firms that stockpiled ahead of tariffs will run dry. Prices will spike.
Product substitutions — Cheaper, lower-quality goods flood the shelves.
Regulatory handouts — Big firms will get carve-outs while small ones collapse.
Consolidation — Fewer players, more control, less freedom.

Tariffs aren’t about national strength—they’re tools of managed decline. And every time you hear someone say “businesses are absorbing the cost,” understand: that’s just code for you’re about to get screwed, but we don’t want you to notice.

Final Word

Vincent Cook nailed the economic side — now I’m sounding the alarm. If you want to see where this all leads, just look at your paycheck, your grocery bill, and your shrinking options. The state and its cronies will not stop until you're fully dependent — on subsidies, on dollar inflation, and on their permission to exist.

Don’t wait for collapse to make you curious. Arm yourself now.

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— Derek Wolfe
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