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> ironically it also seems like US consumers are the ones ultimately paying most of the cost of those trade barriers Consumers will pay more but I'm not as su
by HillaryBriss 7y ago
> ironically it also seems like US consumers are the ones ultimately paying most of the cost of those trade barriers
Consumers will pay more but I'm not as sure about the irony. Couldn't it be that the intent is to reduce US consumption of Chinese imported goods? Couldn't the policy's intent simply be to shift the economy ever so slightly away from consumption and toward production?
- Silhouette 7y agoCouldn't the policy's intent simply be to shift the economy ever so slightly away from consumption and toward production? It certainly could be, but I think how credible that is depends on the goods affected. If they are essentials and there is competition from elsewhere, the barriers make China less competitive, and US customers will presumably go for the best deal to minimise their losses. If they are non-essentials, the barriers also make them less attractive, and again China loses out. But if they are essentials and China is the only game in town, import tariffs look a lot like a tax on the US market.