… is from pages 257-258 of Samuel Gregg’s superb new book, The Civilization of Commerce:
If, for example, a government raises tariffs because it wants to protect particular communities from foreign competition out of a sense of compassion, it often ends up inflicting harm on others, such as consumers who end up paying higher prices or the businesses that experience retaliatory tariffs from abroad.
DBx: Yes.
Indeed, even if foreigners – sensibly attending to their own best interests – refuse to retaliate against U.S. tariffs, some American businesses (and their workers) will suffer as a result of U.S. tariffs because these tariffs reduce the number of dollars foreigners earn to spend on American exports or to invest in U.S.-based companies.
