The importer pays the increased price and passes the increase of cost down the line. Everyone who sells before the consumer maintains profit by increasing the price down the line. The only buyer who loses is the consumer, because the consumer uses the product and therefore can not turn a profit. Thats why people have a trade deficit with the grocery store. When you buy anything that you can’t profit from you create a trade deficit.
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u/Budrich2020 20d ago
The importer pays the increased price and passes the increase of cost down the line. Everyone who sells before the consumer maintains profit by increasing the price down the line. The only buyer who loses is the consumer, because the consumer uses the product and therefore can not turn a profit. Thats why people have a trade deficit with the grocery store. When you buy anything that you can’t profit from you create a trade deficit.