Source: Cato Institute
by Ryan Bourne & Sophia Bagley
“Does Trump really think that restricting the supply of foreign produce into the United States will lower food and grocery prices? The opposite is obviously true. If the food supply restriction he has in mind was a large tariff on imported farm products, it would raise the price of those imports by making them more expensive to bring into the country. Domestic producers, facing less competition, would produce somewhat more but would have less pressure to stay efficient and, in the longer term, less incentive to innovate. As a result, both imported and domestic farm products would become more expensive. Grocery prices would go up, not down — and that’s what we already see with existing food protectionism in the U.S.” (10/09/24)
https://www.cato.org/commentary/restricting-food-imports-will-raise-prices-president-trump