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If you suddenly make importing much more expensive, you will vastly increase the demand for local supply without actually having increased local supply. Local

If you suddenly make importing much more expensive, you will vastly increase the demand for local supply without actually having increased local supply. Local supply prices will then go up the supply-command curve, to match pricing of importing + tariff prices. That is a very sudden shift in pricing, it cannot be good for our local businesses who import. Some will go under. The alternative is just as effective. More effective. Also, I didn't say raise tariffs gradually. I said on a schedule. If supply can be ramped up quickly here, that could mean very fast. Just at a rate the supply side of the market can actually respond to.

nlitened 2y ago
> If supply can be ramped up quickly here, that could mean very fast. Just at a rate the supply side of the market can actually respond to. But with this you inevitably create a bureaucratic committee that would hold the power to decide if it's time to continue increasing tariffs or the supply (estimated by them) hasn't ramped up quickly enough yet. These people will have their own priorities in mind, they will quickly be surrounded with high-profile industry connections and lobbying budgets. Moreover, continuing with the tariff increase schedule will be their lowest priority, because as long as the schedule is complete, they lose their jobs and temporarily mandated powers over many billions of trade flows.