Estela, and other high-end restaurants that import a lot of wine, cheese, olive oil, and other goods from Europe, face a considerable burden from the proposed tariffs. Second, it raises the incomes of American wine producers, but it does so by lowering the incomes of American wine consumers. We might not get the resource-wasting tariffs because there is an open-access clash of special interests: American wine and cheese producers against American restaurateurs. Of course, it would have been better had the tariffs never been proposed in the first place. Whether you are talking about steel, cherries, tires, shrimp, sugar, or fancy wine and cheese, the principles remain the same.

Source: Forbes January 15, 2020 19:50 UTC