So, tariffs on everyone at the same time = inflation, but tariffs on just a few countries makes no difference because trade diverts to non-tariff countries?
You are viewing a single comment's thread from:
So, tariffs on everyone at the same time = inflation, but tariffs on just a few countries makes no difference because trade diverts to non-tariff countries?
Yes. But bear in mind that the exchange rate also plays a part. If the dollar weakens, that also fuels inflation.