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And if the tariff is set too high domestic goods will become more expensive as well as there'd be no reason for a domestic manufacturer to charge substantially
by dpkirchner 1y ago
And if the tariff is set too high domestic goods will become more expensive as well as there'd be no reason for a domestic manufacturer to charge substantially less than the price of the imported goods.
- hdgvhicv 1y agoTwo domestic manufacturers compete to get more customers by reducing prices, price trends to cost. All tarrifs do is remove foreign competition who have lower costs for a variety of reasons, some which benefit the country imposing the tariff, some not. Neoliberal approach is to always require the cheapest goods, no matter the cost. That’s not the only approach.
- CamperBob2 1y agoTwo domestic manufacturers compete to get more customers by reducing prices Which is hard to do when the idiots in charge place tariffs on the raw materials that both manufacturers rely on. That wasn't my first clue that a rational and charitable interpretation of the Trump tariffs doesn't exist, but it was a big one.
- yibg 1y agoRight because removing competition generally reduce prices overall? Even if domestic producer compete with each other, prices still go up overall.