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Deminpenn

(16,360 posts)
10. He still doesn't get it
Sat Nov 2, 2024, 05:46 PM
Nov 2

If there are other t-shirt sellers who buy t-shirts that are made in America, he will be at a disadvantage because he will now have to pay more for his imported tshirts and have to compete with t-shirt sellers who can now out compete him on price.

This guy can then choose to eat the added cost this reducing his profit, pass the cost along to his consumers and lose business or find an American T-shirt manufacturer to buy from. In the latter case, the American company might now have so much business, it could raise prices to all its clients.

Of course, this is what tariffs are designed to do, raise prices so American made products are price competitive with imported goods.


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