John Puri notes the New York Fed study showing that tariffs have contributed to a rise in prices and says that is the point of tariffs.

It is true that the price mechanism is the tool of tariffs, but I’m not sure that higher prices are the point. In a free market (and our own market is the only one that we can, through our political efforts, make free), the price system should still work.

That is, if tariffs raise the price of an import (or goods made with imports) from $8 to $10, the American producer could set a price at $9.99 and win. But, the knowledge that a market clearing price exists below $9.99 is still a blaring incentive for other firms to........

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