• 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.

    • @disgrunty
      link
      139 hours ago

      So what I’m hearing is, we should all be very mad with the Americans?

      • @Dasus
        link
        8
        edit-2
        8 hours ago

        A bit over a half of them, yeah. (I do realise that voters aren’t 100% of the population but)

    • @d00ery
      link
      1
      edit-2
      7 hours ago

      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)

      • @Buddahriffic
        link
        12 hours ago

        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.