Tariffs, Prices, and the Hidden Costs of Trade Barriers

A deep dive into why domestic prices rise when tariffs hit, even with domestic competition. We explore how resource reallocation—land, labor, and capital—drives higher prices through opportunity costs, not merely reduced competition. Using wine and sugar as illustrations, we show how tariffs can waste resources and lower total national wealth, why price controls can backfire, and how this connects to the Marginal Revolution piece from April 6, 2025.

Note: This podcast was AI-generated, and sometimes AI can make mistakes. Please double-check any critical information.

Sponsored by Embersilk LLC