Explain Like I'm Five

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ELI5 How does a tariff against a major trading partner effect the common pleebs? (lemmy.world)

submitted 4 weeks ago by [email protected] to c/[email protected]

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[–] [email protected] 6 points 4 weeks ago

For each thing you want to buy, ask, 'is this, and and every part that makes it, from my country or one of the ones we don't have tariffs with?' If no, price increase. (You have to pay the 'bought from foreigners tax.)' If yes, no change or maybe a small price increase. (if tariffs push the international product's cost higher than the domestic's, the domestic producer may choose to expand their profit margin rather than maintain previous prices)