Comment by rtkwe
7 days ago
California produced 1.94 million gallons of olive oil in 2023. That same year the US used ~98.5 million gallons of olive oil. There just isn't enough space to produce that much olive oil in CA much less produce it profitably or in ways that wouldn't devastate the environment. And all that is ignoring that it takes around 10 years for an olive tree to get to consistent production.
Oh, I agree. I was just pointing out we have some, and it's going to get a lot more expensive now.
> it's going to get a lot more expensive now
why? local producers don't pay the tariffs.
Because they will price their product to be just a little cheaper than the imported alternatives. This has been discussed to death, with citations, and I believe it to be true. We will see, I guess.
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Companies tend to just take the extra profit instead of keeping their prices lower than their competition for no reason.
I mean, if their main competitor just got price jacked by taxes, that will push the demand to them. Since they cannot scale up to satisfy the demand, a correct choice is to raise prices. You can argue that this is price gouging, but the easy counter is that this is the market reacting to the taxes and adjusting the going price.
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Oh look, a Trump advisor who understands nothing.