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To: billyboy15

A tax that distorts the market cannot make a product cheaper. That is the whole point of a tariff today it increases the price of both imports bearing the increased costs as the tariff raises foreign prices and exports because of it affect on the terms of trade and exchange rates.

Export prices are moved up by any increased domestic demand due from the tariffs as inflation at some point will raise its head.

Nor can a tariff make a domestic commodity less expensive, it is just the opposite for multiple reasons.

Tariffs are political weapons and have their costs.


25 posted on 11/18/2018 9:38:18 PM PST by arrogantsob (See "Chaos and Mayhem" at Amazon.com)
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To: arrogantsob

What I was saying was tariffs slapped on imports make those imports more expensive than similar product produced domestically even though domestic production could mean increase to consumer cost due to higher labor cost and excessive regulation.

Of course the best answer is zero tariffs as was indicated by Trump.


26 posted on 11/19/2018 1:20:12 AM PST by billyboy15 (Es)
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