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Is R "Eggplant" Suave going to start another round of MOCKERY? O_O
Demand elasticityBlackvegetable » 01 Feb 2025, 7:59 am » wrote: ↑ what would induce domestic producers to forgo the opportunity to raise prices under the tariff "umbrella"?
I don't buy the "cost will be passed onto the consumer" narrative. An overall reduction in trade between the two parties (which is deflationary) is more likely.
After Trump imposed his soybean export tariffs in 2018, directed to China, China just switched to a new supplier (Brazil). To this day most small soybean farmers in America have not recovered. (Big Ag benefitted from billions more in subsidies)
There's a Canadian economist who recently wrote for the WSJ that Trump's tariffs would cause a deflationary shock for Canada, since Canada is so reliant on trade with the U, while the US has more options.