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xxX6hacke9rXxx04/03/20251 replyview on HN

I did not misread. He used `undervalued` which implies that there is a difference between quality of the product and its price. Slapping on 38% tax to Tunisian olive will undermine this value proposition without improving the producer or the consumers product experience. If anything the relative price (due to the repetitively high tariffs on Tunisia vs Italy) will ruin the value to price ratio that attracts GP to the Tunisian olive oil.

Moreover, his use of the word 'happily' suggests he is not aware of the negative consequences for both the Tunisian exporter, who may have to lower prices or even reduce product quality standards to compete with the now relatively similar-priced Italian olive oil, and the American consumer, who ends up paying more without any improvement in value.

Why would someone be happy with a price increase if it is not helping the producers of the good (which his comment implies he is sympathetic to) or adding any value?


Replies

mkoubaa04/03/2025

You misread.

15 dollars for a liter of my favorite Olive Oil is a trade I would happily make. I didn't say I was happy that the price increased, nor did I say that I am happy about the tariff, nor did I say that I happy relative to how I felt about the trade last week.

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