Source: The Atlantic
by David Frum
“A tariff raises the price of both every imported good and every good that competes with imports. If the price of Modelo is pushed up, the price of American-brewed beer will rise as well. American beermakers are not operating a charity. The tariff on Modelo allows them to both increase their market share at Modelo’s expense and raise their prices enough to increase their margins at the consumers’ expense. But American consumers do not have infinite amounts of money. If they are paying more for beer, they have to make savings elsewhere.” (02/01/25)