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this post was submitted on 04 Aug 2025
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Explain Like I'm Five
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Tariffs work when you have multiple suppliers and only impose them on one. As long as there is someone else to buy from at a cheaper/normal price, it works.
They don’t work when when you tariff everything coming into the country (like Trump is doing). That’s just a tax on the consumer.
They kinda work if you have a solid local production that is not dependant on imports. The US doesn't have that.
Even then localy produced products may go up in price to just under the imported price to maximize profits even though there is no additional overhead.