Explain Like I'm Five

14313 readers

7 users here now

Simplifying Complexity, One Answer at a Time!

Rules

Be respectful and inclusive.
No harassment, hate speech, or trolling.
Engage in constructive discussions.
Share relevant content.
Follow guidelines and moderators' instructions.
Use appropriate language and tone.
Report violations.
Foster a continuous learning environment.

founded 1 year ago

MODERATORS

[email protected]

164

If Trumps tariffs go thru would that not cause the countries the tariffs are imposed on just raise their prices? And a result of that hurt the american consumer? Why do it to begin with? (lemmy.world)

submitted 2 days ago by [email protected] to c/[email protected]

78 comments fedilink hide all child comments

(page 2) 28 comments

sorted by: hot top controversial new old

[–] [email protected] 2 points 2 days ago

Well, this may just be what Canada needs to finally start selling their oil to China!

[+] [email protected] -7 points 2 days ago (1 children)

Higher prices incentivises alternative suppliers.

[–] [email protected] 6 points 1 day ago (1 children)

If you apply blanket tariffs, the only alternative suppliers are domestic, and the current reality is that domestic production of all affected goods is either severely lacking or literally impossible.

There isn't a magic phrase that makes it possible for farmers to grow lettuce under 2 feet of snow, unfortunately.

[–] [email protected] 0 points 1 day ago (1 children)

I aint here to defend the tariffs, just provide some basic economic literacy. If alternative suppliers arent possible, why arent they charging more already?

[–] [email protected] 3 points 1 day ago* (last edited 1 day ago)

If alternative suppliers arent possible, why arent they charging more already?

In the context of blanket import tariffs, the alternative to foreign suppliers are domestic suppliers, and it does already happen. For example, produce prices fluctuate depending on whether the produce is "in season" or not. If something can't be sourced locally or the local supply is reduced, the grocery store charges you more for it because of the additional costs in sourcing it from elsewhere.

Food aside, adding tariffs to everything imported is intended to disincentivize importing goods over domestic production. When demand exceeds domestic supply (and it will*), importing is still going to be necessary to meet that demand. This happens all throughout the supply chain, too. The only difference between now and then is that right now the consumer isn't paying a bonus fee for those imported goods or the imported raw materials used to create them.

*There is not a single industrialized country that is entirely self-sufficient and without imports.

load more comments