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by ben_w
440 days ago
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Beyond a certain point, the tariffs become meaningless because nobody bothers trading legally anyway. I don't know where the real cutoff is, but for an extreme example: if the tariffs are 1e6% or 1e7%, nobody's buying anything by lawful channels. Also, there's not much stopping people from shipping to a country with a 10% tariff, that 10% country taking a 1% cut to slap a different "made in" label on the side and then re-exporting to the US, making it effectively an 11% tariff for whoever originally made it. |
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I know very little however, so if someone with more knowledge on this can chime in on how this works practically, it would edifying.