Comment by lottin
8 days ago
> 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.
> 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.