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this post was submitted on 20 Nov 2024
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Tariffs are paid by the importer, not the exporter.
It's immaterial who pays them, the end result is that the product is more expensive to export to the country who levies the tariff. If everyone does them to one country at the same time because they did bad stuff, that's a sanction.
When Europe sanctions Russia and China, they're basically just sanctioning themselves.
Yeah but the end result is that it makes importing goods by the tariffed nation more expensive and thus creates an incentive for other markets to fill the gap and applies more pressure squeezing them and creating an incentive to behave.
If all nations tariff a nation symultaniously thats what a sanction is.
We have sanctioned the Russians for their ukrainian effort ie all nations hace tariffed them to the point that it makes international trade untennable.
If something costs $10 from China after paying a tariff, but can be made in your own country for $7, what will happen?
It can’t be made in your own country for $7, because: