2 ms·
> Whereas high foreign tariffs on US goods are in effect a tax on foreign consumers, meaning they get less for their money. When prices are higher, consumers b
by mabbo 8y ago
> Whereas high foreign tariffs on US goods are in effect a tax on foreign consumers, meaning they get less for their money.
When prices are higher, consumers buy less. So those foreign consumers are indeed getting less for their money- so they will buy less US Goods, reducing the money coming to US producers. Instead, those foreign consumers will buy local goods at lower prices.
- wpietri 8y agoExcept that foreign competition will reduce prices overall. Tariffs blunt that, meaning foreign consumers will buy local goods at higher prices than they would without tariffs.