this post was submitted on 17 Mar 2025
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Leopards Ate My Face

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[–] Dnb@lemmy.dbzer0.com 2 points 16 hours ago (1 children)

In your scenario how is the local made $100 item bought at $80? Where is a $20 refund paid from? You are double spending it on both imported and local goods

[–] Sceptique@leminal.space 1 points 12 hours ago

In the scenario local good is still worth $100 but given that you refund all good by the amount added by the tariff later, you have $20 refunded (not really $20 as i tried to show previously, but $20 x total_tariff / total_amount_of_good_bought_locally_and_imported, so somewhere between $80 and $100 net for local production and between $100 and $120 for imported good, depending on the ratio import/import+localprod