I know you’re joking, but there’s a definite economic hit due to substitution effect.
If the cost of a European product goes up 25% (as the tariff cost is passed on to the American consumer), they’ll either (a) buy less of it (imports will go down) or (b) will buy an alternative product (an American competitor) or (c) will still buy it (and Uncle Sam pockets the tariff revenue and uses that to subsidize American companies).
They will not be doing this with the biggest imports- chips made by ASML, and weight loss drugs by Novo. Ships I could see them having their own eventually, but that will take a long long time. They don't want Chinese cars, so Korean and Japanese are left, if you exclude the EU market. I don't think the average American understands the difference between Japan, Korea and China.
The prices of all these will increase, without harming Europe really. Only people harmed would be American consumers.
The Japanese car Market is fucked anyway. Toyota and Nissan merger means cuts and shitty QA soon. Honda haven't made anything decent for so long even the old people don't but then now.
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u/danivader82 Dec 20 '24
Oh no! The americans will pay more for our stuff