if I was leading a country getting tarriffed, I would simply do nothing but keep trading.
If your neighbors shoot themselves in the balls with taxes, why would you retaliate by shooting yourself in the balls? Makes no sense
Your industries become competitive by offering high quality products at competitive prices, not by governments taxing everything
People don't seem to understand that a high tariff on a firms export will result in higher sales / retail prices for the importing country? You roll over the cost into the product price. It's that simple and the consumers are the ones who will pay for it.
We do understand that. But it also creates an environment for alternatives and that creates competition. Competition is what breeds a free market.
Your logic is beginning from a place of error. We don't have a free market. We have tipped scales.
Because the local politicians want to appear strong and relevant. They care not for consequences as they have their Villain to justify their continued heist.
Performative theatrics, mostly.
The whole Doug Ford - 25% energy scare tactic was the best example of this.
They all want to seem tough.
You're right, we should just accept these tariffs and do our best to mitigate around them.
Escalation is a really dumb idea.
You'd be fighting an uphill battle in telling people that we're letting the other country shoot themselves in the balls while we focus on building and becoming competitive. The narrative would be "utxo one, the weak prime minister doing nothing for his people in this trade war".
Ego is a hell of a drug and always wins in the real world
Whoa, whoa, whoa!!! Politics has no room for common sense and logic! GTFO!
