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Old 10-08-2004, 09:13 AM
aces961 aces961 is offline
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Location: Urbana, IL
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Default Re: Question for Libertarians

[ QUOTE ]
Well, true...though the standard government response of imposing counter-tariffs does not compensate either, in the manner you are addressing.

[/ QUOTE ]

In a few cases it does though. Suppose you had Company A which was an american company, and company B from the country in question, and that these two companies are in direct competition with each other. Suppose that the tariff imposed by the country in question causes Company A to lose 30 percent of their business to company B. If the US enacted a tariff in response that caused company B to lose a corresponding amount of their business in the US to company A. This would have compensated company A. While it is hard to make this work that perfectly in practice, what it does is serve as somewhat of a deterrent to other countries not to put tariffs on our goods if they would want to not have tariffs on the goods their companies sell in the U.S.
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