Saturday, May 17, 2025

Unexpected Price Competition

One of the traditional arguments against protective tariffs is that driving up the price of imported goods will reduce price competition from domestic manufacturers.   The logic is flawless and it us certainly true, but other factors come into play as well.  This 5/17/25 Business Insider article describes a business in the wholesale secondhand clothing market.  They report rising demand for their goods because higher tariffs make used but originally well made clothes in higher demand  

My wife considers most Chinese-made clothes of poor quality.  I can see how quality used clothes would represent a competitive price point keeping domestic manufactured clothing lower priced.

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