This is exactly what happens. I can pay 100% tariff on solar panels that I can’t source locally at all, but we have a tariff to encourage a nonexistent industry to not flourish. And so I buy panels that China routes through SE Asia instead and add 95% extra cost to do that. So panels I sell customers are twice what they need to be and so they buy half as much and make up the difference with coal-fired electricity.
This is exactly what happens. I can pay 100% tariff on solar panels that I can’t source locally at all, but we have a tariff to encourage a nonexistent industry to not flourish. And so I buy panels that China routes through SE Asia instead and add 95% extra cost to do that. So panels I sell customers are twice what they need to be and so they buy half as much and make up the difference with coal-fired electricity.
The wonderfulness that is the invisible hand…