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

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[–] [email protected] 6 points 7 hours ago

They're a tool for correcting price alterations on the seller side. If China is subsidizing the manufacturing of Fidgets, a matching tarrif on the import of Fidgets protects domestic manufacturing from artificially cheap competition by preventing consumers from seeing those low prices.

The subsidies don't even need to be hostile. The US subsidizes food to lower domestic costs, ensure a stockpile, and keep farmers happy. The side effect of driving down world grain prices is incidental.