3 upvotes, 1 direct replies (showing 1)
The argument is that the tarrifs increase the price, so people shop elsewhere where the tarrifs likely don't exist, hurting the business from that place you imposed the tarrifs on.
That's the whole economic and political reason for them. Whether that works the way you want it to or not is highly nuanced and situation specific.
Comment by idungiveboutnothing at 27/01/2025 at 03:18 UTC
18 upvotes, 0 direct replies
The problem is it's a global market and China has invested heavily in South American and African supply chains now. They just sell elsewhere in the world using existing supply chains, the US loses supply from one place and the supply chain has to shift to sourcing elsewhere, prices raise in the interim to account for the shifted sourcing and supply chain costs, and then once the new shipping and supply chains are established and costs drop the companies don't lower prices because consumers are used to paying them so they get extra profit to cover losses in past years.
That's essentially the world now.