logoalt Hacker News

lottin04/03/20251 replyview on HN

> If a company can purchase the same clothing from Chinese, Vietnamese, or Mexican vendors, a tax on China only could make the Chinese vendors lower the price or risk losing the business.

This example implies producers are already in competition with one another, so it's unlikely that any of them can lower the price much. On the other hand, if some producers leave the market due to the tariffs, then there's less competition overall and the other producers can charge more.


Replies

oasisaimlessly04/03/2025

> This example implies producers are already in competition with one another, so it's unlikely that any of them can lower the price much.

Non sequitor. Differing production conditions between countries would result in differing profit margins.