Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Toddsterpatriot
Thanks. So your previous claims that you don't pay a higher price if you don't buy the import were wrong.

More clarification, a tariff only affects the price of imported goods, America is still self sufficient in many ares of manufacturing. For example if the USA is self sufficient in "blue widgets" then the tariff would not cause the consumer to pay more for "blue widgets". The domestic producers would have an advantage with tariffs and eventually prices would stabilize at a point slightly higher than during the era of Free Trade. This difference would represent the cost of labor which is higher in the USA than Asia.

Manufactured product prices would go marginally higher with US labor but the real the question is how much higher and what are to political and social trade offs. Union labor is the highest cost, for example 8% of the retail price of a union built car covers labor, so in my estimation at most 8% higher in a closed market.

124 posted on 03/09/2016 11:00:24 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 118 | View Replies ]


To: central_va

Nonsense. If our international competitors take a price increase, for any reason, we will, almost immediately, increase our prices. If Trump hits imported autos with a 45% tariff, it is lunacy to believe that domestic producers are not going to increase their prices.


125 posted on 03/09/2016 11:12:57 AM PST by Mase (Save me from the people who would save me from myself!)
[ Post Reply | Private Reply | To 124 | View Replies ]

To: central_va
More clarification, a tariff only affects the price of imported goods

You just said an oil tariff will cause domestic oil to rise to match the import price, why do you feel a tariff on an imported good doesn't do the same to the equivalent domestic good?

For example if the USA is self sufficient in "blue widgets" then the tariff would not cause the consumer to pay more for "blue widgets".

Not sure what you mean by "self sufficient". If we import no "blue widgets", a blue widget tariff has no impact. If we import some, do you feel the domestic price doesn't rise?

The domestic producers would have an advantage with tariffs and eventually prices would stabilize at a point slightly higher

You're contradicting your previous claim, "a tariff only affects the price of imported goods".

127 posted on 03/09/2016 11:23:22 AM PST by Toddsterpatriot ("Telling the government to lower trade barriers to zero...is government interference" central_va)
[ Post Reply | Private Reply | To 124 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson