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| Easy example is clothing. We could run a 200% tariff tax on all clothing imports and little would return. Clothing will cost more and most households only have so many dollars to go around each month. Substitution is true for some, but no way negates the loss of purchasing power from macro. Factories don't relocate overnight. Would you close up shop in Bangladesh and reopen in Indonesia over tariff policy that can come and go?
Edited by reformedbanker 4/3/2025 08:10
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Trump Tariffs = Biden’s “IRA” = Inflation.
