The tariff is not there to raise money, you know. It is one of the few tools, short of military invasion, that may be raised quickly and have devastating effect upon the parties on whom the tariffs may be imposed.
Either they take less, a LOT less, for their product, or the price becomes so high in the country which formerly imported the product, it becomes cheaper and more feasible to go to a different source of supply, or start producing the product in your own country.
understood.
sensible .
but 5% won’t impact much at all.
when that 5% gets up to about 20%, Mexico will be impacted enough, I think, to pay some attention to USA’s requests
Except that it does raise revenue, a lot of revenue.
I would believe Trump is graduating
the scale to lesson the impact of
higher prices being paid. More or
less giving consumers time to find
alternate sources. A 25% tarriff
all at once would be a tough pill
to swallow.