4 ms·
This is one advantage of tariffs. Increase the costs. For some applications there are easy substitutes, for others it is harder which incentivizes the creation
by jacobr1 4y ago
This is one advantage of tariffs. Increase the costs. For some applications there are easy substitutes, for others it is harder which incentivizes the creation of alternatives.
Of course the downside of tariffs are also well-known. Retaliation tariffs that damage your own industry. Increased costs being passed own downstream in the economy resulting in less value creation. The overall deadweight loss of not utilizing comparative advantage.
It still might be worth it, but you don't get that "force" for free.