3 ms·

Of course you can. Competition means exporters can lower their prices to help mitigate the tariffs in order to beat their competitors.

• wat10000 1y ago
  They can do that without tariffs too.
  • SirMaster 1y ago
    But why would they if they don't have a competition on price without a tariff?
    • wat10000 1y ago
      Why wouldn’t they have competition?
      • geysersam 1y ago
        Even if you assume perfect competition costs like tariffs can be passed back to producers. Imagine a demand and a supply curve. From the perspective of a producer outside the country the tariff effectively shifts the demand curve, but doesn't affect supply. That's going to lead to a lower price at equilibrium. Of course, from the perspective of the consumer it's the opposite situation, the supply curve shifts which leads to a higher price at equilibrium. Both happen simultaneously, who pays most of the tariff depends on the elasticity of the supply and the demand