Comment by ccorcos
15 days ago
Weighted average is an interesting metric, but I'm not sure of its value in this context. I can imagine that perhaps 2-3% is more of an equilibrium and any amount of tariffs will still trend towards some market equlibrium.
I believe the EU has 10% tariffs on all US autos and we didnt have tariff theirs. That seems relevant in a way that this weighted average doesn't account for, right?
We tarrif Trucks because they tarrifed our chickens. Tarrifs are pretty complicated and often don't make sense. But no the idea that EU tarrifs on the US are much higher on average is unsupportable
And the US has a 25% tariff on F150s (light duty vehicles).
You can go tit for tat down the line, but all in all the numbers I gave you are the sum of everything.
Heavy tariffs won’t bring an equilibrium. It will only make imported goods expensive and allow the existing domestic producers to become laze and uncompetitive, all in all zeroing their export value.