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The white house numbers assume 75% of the tariffs will be paid by foreigners. That’s actually not a crazy assumption for targeted tariffs. Imagine we only add
by hedora 2y ago
The white house numbers assume 75% of the tariffs will be paid by foreigners.
That’s actually not a crazy assumption for targeted tariffs. Imagine we only added a tariff to German cars. BMW and VW would have to compete with normally priced sedans, and lower their margins.
Of course, that doesn’t work if you tariff 100% of the suppliers of essential goods.
- DrillShopper 2y ago> BMW and VW would have to compete with normally priced sedans What will keep the US auto makers from just being 5% under the imports' price? They will still win on cost, can blame Trump, and also capture all the money on the table.