Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
Realistically though, that’s how tariffs just work. With products costing more, theoretically that should drive demand down and eventually lead to fewer imports. Of course, if there’s still no competing product or the product is a basic necessity, then it’ll likely just result in people paying more.
Yah, I mean realistically, I can only really see tariffs working if a nation is trying to enter an industry. That’s not the case here, but even so, these tariffs differ from the ones you mentioned because they would be against Chinese imports rather than a specific product, so I can’t imagine there’s as much risk of that sort of market manipulation from happening again… but then again, I’ve got no idea.
There isn’t a competition in the market between Malaysian washing machines vs Chinese washing machines, in reality the tariffs will affect Chinese goods mainly, and any industry will raise prices to pocket the difference as we saw in the above example. It was more than just a single appliance that raised the prices.
Realistically though, that’s how tariffs just work. With products costing more, theoretically that should drive demand down and eventually lead to fewer imports. Of course, if there’s still no competing product or the product is a basic necessity, then it’ll likely just result in people paying more.
We tried this in 2017. Trump put tariffs on dishwashers, and American companies just raised their prices to match, pocketing the difference.
Yah, I mean realistically, I can only really see tariffs working if a nation is trying to enter an industry. That’s not the case here, but even so, these tariffs differ from the ones you mentioned because they would be against Chinese imports rather than a specific product, so I can’t imagine there’s as much risk of that sort of market manipulation from happening again… but then again, I’ve got no idea.
If you’ve got no idea then why argue?
There isn’t a competition in the market between Malaysian washing machines vs Chinese washing machines, in reality the tariffs will affect Chinese goods mainly, and any industry will raise prices to pocket the difference as we saw in the above example. It was more than just a single appliance that raised the prices.