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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Author: sano 🐝  😊 😞
Number: of 84361 
Subject: Re: So It Begins
Date: 11/10/24 12:29 PM
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Will USians, pay more for those imports from Mexico after a tariff makes them more expensive? My guess is that they will. We are addicted to cheap crap whether it comes from China, Mexico, or wherever.

Maybe we'll buy a bit less. (I'm still a believer in Microeconomics, so adding a tariff should reduce the volume of goods sold by a bit.) That would cut into Mexico's exports and also make the goods more expensive in the US. But Americans would still be paying some part (probably a not insignificant part) of the tariff, because we'd keep buying the stuff even if it costs more.


The US imports a tremendous amount of fresh and prepared food from 'down south.'

I now live in the heart of California avocado country.

Costco and the major supermarkets sell imported Mexican avocados, an industry heavily impacted by Mexican cartels. About $1.75 to 3.00 apiece.

A few years ago I began buying avos direct from an avo farm a mile away with 500 acres of trees for about $1.00. Every time the majors raised their prices on Mexicados, the local growers raised in step with majors. Now the 500 acre farm charges $1.75/avo with no intention of rolling back the cost.

I'd expect local farms will raise their direct sales price to stay just under whatever the majors charge if tariffs are imposed whether it's 25/50/75%. Why would they not?

Same for everything other imported product. Local producers will match the increase caused by tariffs.





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This community has written 84,309 posts about US Policy. The article-length ones it recommended most:
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