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3 mo. ago

  • Not an economic, but everything is entangled

    Say you have two products: one from USA ($110) and the same from Canada ($100). Now we impose a tariff of 25 pct on the Canadian product ($125).

    This means that consumers are going to buy the cheaper product, resulting in less income for the Canadian manufacturer.

    The USA manufacturer can increase the price to $120, and still be cheaper than their Canadian counterpart. All while prices for customers are increasing