Scott Lincecum

The economic incidence is trickier, right? Because foreign producers can, in theory, lower their prices to offset the tariff, right? So if you used to be charging 100 and there's a 25% tariff, you start charging 80. 80 plus 20, you're back to 100. Everything's good, right? Another thing is there are currency movements. So the economic incidence is harder.

Generally, though, we have a ton of recent evidence from the Trump 1.0 tariffs. And we found that the economic incidence, the burden of these tariffs was primarily falling on domestic American companies and consumers.

Generally, though, we have a ton of recent evidence from the Trump 1.0 tariffs. And we found that the economic incidence, the burden of these tariffs was primarily falling on domestic American companies and consumers.

Generally, though, we have a ton of recent evidence from the Trump 1.0 tariffs. And we found that the economic incidence, the burden of these tariffs was primarily falling on domestic American companies and consumers.

You still get the exact same legal framework. Customs collects the duty from the importer. The only thing that changes is the import price of the good. So basically, a foreign producer can say, you know what, I'm going to lower my prices and effectively offset any additional tariff that's applied at the border. It happens occasionally. And I would imagine you're going to see some –

You still get the exact same legal framework. Customs collects the duty from the importer. The only thing that changes is the import price of the good. So basically, a foreign producer can say, you know what, I'm going to lower my prices and effectively offset any additional tariff that's applied at the border. It happens occasionally. And I would imagine you're going to see some –

You still get the exact same legal framework. Customs collects the duty from the importer. The only thing that changes is the import price of the good. So basically, a foreign producer can say, you know what, I'm going to lower my prices and effectively offset any additional tariff that's applied at the border. It happens occasionally. And I would imagine you're going to see some –

of this with these new tariffs. But in general, most of it is going to be paid by Americans. And the other thing we should note, though, is there's then an invisible tariff. Because tariffs don't just raise the price of imports. They raise the price of domestic goods, too. Because if you're a domestic producer, you suddenly have more demand and less competition and less supply in the market.

of this with these new tariffs. But in general, most of it is going to be paid by Americans. And the other thing we should note, though, is there's then an invisible tariff. Because tariffs don't just raise the price of imports. They raise the price of domestic goods, too. Because if you're a domestic producer, you suddenly have more demand and less competition and less supply in the market.

of this with these new tariffs. But in general, most of it is going to be paid by Americans. And the other thing we should note, though, is there's then an invisible tariff. Because tariffs don't just raise the price of imports. They raise the price of domestic goods, too. Because if you're a domestic producer, you suddenly have more demand and less competition and less supply in the market.

So we, Econ 101, you raise your prices, right? Supply and demand. Yeah. So this morning, Wall Street Journal had the most predictable headline ever, which is that U.S. steelmakers are raising their prices right now. because of these tariffs.

So we, Econ 101, you raise your prices, right? Supply and demand. Yeah. So this morning, Wall Street Journal had the most predictable headline ever, which is that U.S. steelmakers are raising their prices right now. because of these tariffs.

So we, Econ 101, you raise your prices, right? Supply and demand. Yeah. So this morning, Wall Street Journal had the most predictable headline ever, which is that U.S. steelmakers are raising their prices right now. because of these tariffs.

And great for manufacturers, because you and I, I mean, actually, I don't know about your shopping habits, Tim, but I don't go out and buy big hunks of steel.

And great for manufacturers, because you and I, I mean, actually, I don't know about your shopping habits, Tim, but I don't go out and buy big hunks of steel.

And great for manufacturers, because you and I, I mean, actually, I don't know about your shopping habits, Tim, but I don't go out and buy big hunks of steel.

Okay. So, that's all American manufacturers. So,

Okay. So, that's all American manufacturers. So,

Okay. So, that's all American manufacturers. So,

automakers aircraft manufacturers energy pipeline producers you name it these are the folks that are going to be eating these new higher prices as well as any higher import prices as well i love that little economics lesson okay just one more time on crossing the border i want you to do the sesame street style all right so we've got like you're imagining it's a cartoon i guess sesame street isn't a cartoon we're gonna do a pbs cartoon