Where there are many different sources of supply in commodities, then suppliers that are subject to tarrifs will have to drop their prices to compete. But US buyers still pay the import tarrifs that are passed onto to consumers and don't get the benefit of lower prices. It is a tax on US citizens.
In the case of Chinese made consumer items, they are such a huge supplier that in many examples there are no other suppliers in the short term. Again US citizens end up paying the import tarrifs to the US government.
China may lose market share but it is US consumers who pay the tarrifs.
Once you factor in the cost of retaliatory tarrifs imposed by China which have cost American and Canadian farmers billions of dollars, it is clear that everyone loses under Trumps trade war with China.
In the case of Chinese made consumer items, they are such a huge supplier that in many examples there are no other suppliers in the short term. Again US citizens end up paying the import tarrifs to the US government.
China may lose market share but it is US consumers who pay the tarrifs.
Once you factor in the cost of retaliatory tarrifs imposed by China which have cost American and Canadian farmers billions of dollars, it is clear that everyone loses under Trumps trade war with China.
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