🇨🇦 tunetardis

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Cake day: June 11th, 2023

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  • 🇨🇦 tunetardis@lemmy.catoNews@lemmy.world*Permanently Deleted*
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    25 days ago

    I guess if you look at the track record of how tariffs have played out in the past, there has tended not to be a lot of price relief in going with domestic producers.

    Take something like aluminum. While the US does have a domestic industry, it couldn’t possibly meet demand in the short term at least. So industries hoping to source aluminum may initially flock to the domestic product, causing a run on it that raises prices. At the end of the day, they’ll wind up paying something close to what the imported aluminum costs. This is the new price of aluminum. Live with it.

    In the long term, the domestic industry may grow to the point that it displaces the imports. Will that lead to price relief? Again, uncertain. There are reasons why certain parts of the world produce much of the world supply of X, and cost of production is one of them. Also, counter-tariffs may reduce the growth potential of a domestic industry, leading to less investment.

    It’s not just the US of course. Everyone everywhere will be paying more for everything. Tariffs just suck.