Replies

"You asked for a "direct restriction." I gave you more than 4 billion of them."

The response I'm sure you're referring to is #230:

"You must've forgotten that the EU was ready to slap 4.1 billion dollars in sanctions on U.S. firms in response to our 30% steel tariff. Does that count? [smirk]"

Once again, I ask the question:

What is the direct restriction on American capitalism? It is a tax. So what. It does not prevent the steel companies from operating. It does not mandate that they can not sell to other nations. You're avoidance of the answer is an illustration that you think a tariff is a government regulation which prevents the operation or creation of any company. Again, I ask, how does a tariff prevent myself, yourself or anyone else from the creation or operation of an American corporation within our own borders?

Again, I ask, how does a tariff prevent myself, yourself or anyone else from the creation or operation of an American corporation within our own borders?

Your fixation on "direct" cost is mystifying, as if you believe an "indirect" cost is less of a cost in any case. I'll leave you to determine whether the following are direct or not, and you can argue semantics elsewhere.

The U.S. imposes a tariff on imports. This action can impede the "creation or operation" of an American business in the following manners:

1. The EU, for example, retaliates by imposing duties on American exports. More duties, less exports. Ergo, we have a restriction on the operation of American business.
2. Restricting the available market for an export raises the barrier to entry for that market. Thus, we have a restriction of the creation of American business.
3. Under the unbrella of the tariff, domestic producers of the "protected" product raise prices, shifting the cost of the tariff regime to producers farther down the economic ladder.

Naturally, this discussion of cost is not comprehensive, and can be re-applied until we reach the consumer, provided he can purchase the product without being priced out of the market, or provided the consumer has not lost his job as part of the cost.