Weekly Econ Articles
Fireworks, Strawberry Sandwiches, Bridge Tolls, and more
Trade and Specialization: Why Your Fourth of July Fireworks May Be Disrupted — Next Year ⎟ Bloomberg
Enjoy your fireworks show this year. At the current tariff rates, with over 90% of fireworks imported from China, next year’s fireworks for America’s 250th birthday may not be as spectacular.
Fiscal Policy, Taxes, and Government Budget: M&S faces possible court battle over VAT on viral strawberry sandwich⎟ Retail Gazette
Debate is raging over the proper tax classification of M&S strawberry sandwiches. As a sandwich, the food is exempt from 20% VAT, but if it is considered a “sweetened prepared food eaten with the fingers,” then it is subject to VAT.
Trade and Specialization: Nike expects Trump tariffs to cost it $1bn ⎟The Guardian
Approximately 60% of all Nike-branded apparel comes from Vietnam, China, and Cambodia. 95% of Nike’s footwear is manufactured in Vietnam, Indonesia and China. That’s added up to a $1 billion dollar cost increase for Nike from tariffs. Can Nike pivot quickly enough to turn around its fortunes?
Costs of Production: Why the $25,000 car is going extinct ⎟The Hustle
Prices on budget-friendly vehicles have been rising more than their luxury counterparts. The simple explanation is that both models have similar costs, but luxury vehicles have much higher profit margins, leading to dealers stocking more of them.
Price System: Is the Nordic noir Oresund Bridge guilty of daylight robbery? ⎟The Times
The world’s most expensive toll bridge connects Copenhagen and Malmo. It’s transformed the economies of both cities, but employees who commute back and forth argue the toll is far too high.
Supply, Demand and Equilibrium: You wouldn’t guess who’s driving perfume sales ⎟The Hustle
There’s been a shift to the right in the demand for fragrances lately, driven by 2 distinct groups. TikTok trends of fragrance layering are driving up perfume sales for Gen Z men. And GLP-1 users are increasingly buying fragrances in their search to replace the sensory euphoria they used to get from food.