>>513027107
>shitskins and leftists don't understand basic economic concepts like price elasticity or market power
the united states is the walmart of the global economic system and can use its market power to force their suppliers to accept shit deals. that's before even getting into all of the other political and hard power they have at their disposal. trump's tariffs are functioning as a pseudo-corporate tax because of how much of global trade (something like ~70% of total trade at the global level) is done by multinational corporations
>>513027690
>firms are profit-maximizing and will change their behavior in response to structural changes in profit conditions
obviously, but the point being made here is that the relationship between an increase in producer prices (i.e. a shock coming from a sudden tax increase like a tariff) and consumer price (the price the consumer is paying at the store) is not necessarily linear, and clearly not in the short-term. if trump slaps a 100% tariff on the wheat coming from Bomalia (which only would make up a small fraction of total wheat imports into America), then it's not possible for Bomalia, even in the medium-long term to fully pass that cost onto consumers because they would immediately be undercut by other wheat suppliers not subject to this tariff. altruism has nothing to do with this.
perhaps firms might even change their behavior in response to the tariffs in such a way that they are not subject to tariffs, geographically, almost like tariffs are being used as industrial policy levers to encourage onshoring
