If country A sells most of an export to country B and country B makes it harder for country A to sell to country B, country A may raise prices for countries C, D and E to make up for the losses caused by country B.
Yeah, I’d think they’re going to produce what they are going to produce and will adjust allocation and prices to accommodate the demand change in the tariff country.
If country A sells most of an export to country B and country B makes it harder for country A to sell to country B, country A may raise prices for countries C, D and E to make up for the losses caused by country B.
So what I’m hearing is, we should all be very mad with the Americans?
A bit over a half of them, yeah. (I do realise that voters aren’t 100% of the population but)
Could country A try to decrease exports to country B and increase exports to country C, D, and E, perhaps by lowering the cost in C, D, and E?
I don’t have any evidence for, and this document is just too long for me to read at this late hour. [IMF - Macroeconomic Consequences of Tariffs](Macroeconomic Consequences of Tariffs. https://www.imf.org/-/media/Files/Publications/WP/2019/wp1909.ashx)
Yeah, I’d think they’re going to produce what they are going to produce and will adjust allocation and prices to accommodate the demand change in the tariff country.