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Not if they had huge foreign markets that dried up
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True, I was just trying to think about tariffs specific effects.
As a slight aside, one of the rules in economics is to avoid relying on preference changes as an explanation for anything, even though we know that preferences do change and there are effects. That's because we can't observe preferences and changing preferences can potentially explain anything.
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The whole field of econometrics was essentially developed to help us distinguish changes caused by observable phenomena vs. unobservable phenomena like preference changes.
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That wouldn't be the expected direction of price change from tariffs....It might be that they're getting hammered by reciprocal tariffs from other nations.
Exactly. When Napa wines only effective market is now domestic there is much more supply relative to domestic demand.
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That wouldn't be the expected direction of price change from tariffs. If the substitutes become more expensive, demand will shift to the Napa wine, driving it's price up.
It might be that they're getting hammered by reciprocal tariffs from other nations. That would reduce foreign demand and reduce the domestic price.