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Tariffs on a widget made in China would make that widget less competitive relative to competing widgets made in other countries. Chinese widget sales would fall
by Reason077 6y ago
Tariffs on a widget made in China would make that widget less competitive relative to competing widgets made in other countries. Chinese widget sales would fall, so it would “cost” them in the form of reduced sales and profits.
Even if there is no competing widget, sales still fall due to demand elasticity.