The tariff itself will cause up to 1.4% increase in the general price level. But that will be offset by the lowered income taxes. Taxpayers would have on average $1500 from lowered taxes to pay the increase costs of imports, if they choose to continue buying imports.
If a domestic product includes an imported component, it may go up, but only by the proportion that it has imports as components. And that is already factored in the general price increase above.
If a domestic product exists that currently competes against an import, then conceivably that domestic product could raise it's prices. But if they were competing profitably before, the increase would result in excess profits, and more domestic competitors would enter the market driving the price back down.\
Right. Because when foreign oil goes up 10%, domestic oil goes up 10% as well.
Taxpayers would have on average $1500 from lowered taxes
Workers would, retirees, not so much.
to pay the increase costs of imports, if they choose to continue buying imports.
And if they only buy domestic goods, which also went up in price, you'll send them your $1500?
If a domestic product exists that currently competes against an import, then conceivably that domestic product could raise it's prices.
LOL!