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To: Pelham
European shippers would choose lower tariff southern ports when possible. Previously tariffs were equal so there was no reason to make a choice based on price. European goods would also be less expensive for the South when tariffs were lower. Northern made goods would be less competitive. The lower tariff would have an impact, just as tax havens do today.

I'm assuming that the South is an independent country in your scenario? So again, why would goods destined for Northern consumers go there? The tariff makes no difference to European supplier because they don't pay it, the consumer does. Goods that U.S. consumers want will have to cross the border at some point and the U.S. tariff would be applied there. If the Confederacy has already applied their own tariff then that would serve to make goods shipped via the South to be even more expensive. As for Northern goods meant for Southern consumers those would be taxed at the same rate as European goods would be so the European goods would not have a cost advantage.

238 posted on 05/24/2015 6:43:07 AM PDT by DoodleDawg
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To: DoodleDawg

Goods bound for the American market as a whole could have gone to any port when tariffs were equal. Lower tariffs would draw off trade. This had been illustrated for years in New Orleans where the Baratarians ran a thriving smuggling business. The long border between a coastal Confederacy and its US neighbors would have been hard to police.


241 posted on 05/24/2015 10:57:11 AM PDT by Pelham (The refusal to deport is defacto amnesty)
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