Sorry, I
Should have specified. These tariffs are designed to reduce supply. Tariffs of 125% are designed to get foreign sellers to abandon the market. That is what has happened reducing supply.
They are also triggering boycotts overseas, reducing demand.
You’re thinking it’s a zero sim game in terms of production and pricing, when elastic. When prices rise, outside of their control, producers seek other markets or produce different products.
Yeah over some period that could (likely would) occur and increasing the aggregate domestic demand wouldn’t necessarily restore the amount available imported goods in the economy, and it could indeed result in additional inflation. That makes sense but it’s gonna take a bit for supply chains to reshuffle. I think you’re right that it’s already beginning to happen.
Sorry, I
Should have specified. These tariffs are designed to reduce supply. Tariffs of 125% are designed to get foreign sellers to abandon the market. That is what has happened reducing supply.
They are also triggering boycotts overseas, reducing demand.
You’re thinking it’s a zero sim game in terms of production and pricing, when elastic. When prices rise, outside of their control, producers seek other markets or produce different products.
Yeah over some period that could (likely would) occur and increasing the aggregate domestic demand wouldn’t necessarily restore the amount available imported goods in the economy, and it could indeed result in additional inflation. That makes sense but it’s gonna take a bit for supply chains to reshuffle. I think you’re right that it’s already beginning to happen.