Supply and demand means that the tariffs will raise the supply curve, given that many suppliers are foreign.
This will impact price but nothing like a 1 to 1 increase except in situations with low elasticity and very high percentage of foreign producers. /1
This will impact price but nothing like a 1 to 1 increase except in situations with low elasticity and very high percentage of foreign producers. /1
https://twitter.com/andersnormandy/status/1907684282044232032
That itself might be read as “necessities the US doesn’t produce”, which is problematic on its face. So even where prices rise very high, there is a different dimension of advantage in that we ought to re-shore our production of necessities. /2
With regard to negative externalities, the widespread use of slave labor, lack of labor and environmental laws in foreign production requires the use of tariffs to overcome the relative inequality in regulation. /3
Certainly America is over-regulated but the answer there is not to favor countries that aren’t, but to get rid of the offending regulations here, while using tariffs to balance out the externalities.
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