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232 points pseudolus | 1 comments | | HN request time: 0s | source
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banku_brougham ◴[] No.43948598[source]
Huge amount of discussion in this thread neglects the idea that a massive increase in tariffs will throttle trade shipments. Its the obvious expected effect.
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fallingknife ◴[] No.43948674[source]
That's obvious. I think the question is more one of how long will they be throttled for? Even if there was a domestic or foreign nontariffed supplier for 100% of the goods in question it would still take significant lead time for the new orders to be filled and even more for cases where capacity needs to be increased.
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theturtletalks ◴[] No.43949065[source]
No one knows, it’s a game of chicken. Will the suppliers eat the tariff cost if they start losing market share? Will consumers just pay the extra cost if they really need the item?

If the latter happens, will a domestic company come in and undercut the international sellers?

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1. lurkshark ◴[] No.43949750[source]
The on-again-off-again of the tariffs throws another wrench in there. It would be a big gamble to start building a domestic factory right now because you don’t know if the tariffs are going to stick around long enough to make it worth it. Plus you still have the issue of tariffs on imported materials cutting away at any potential margin.