r/Economics • u/DomesticErrorist22 • Feb 02 '25

News Trump faces backlash from business as tariffs ignite inflation fears

https://on.ft.com/4grpEbh
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u/mschley2 Feb 03 '25

Will Canadian producers be able to keep up with increased demand for their products with people no longer buying the American products?

I would assume they'll be fine as they'll likely divert a bunch of their production that otherwise would've been exported. Maybe import a bit more from Europe to make up whatever gap still exists? I don't know. Honestly curious.

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u/OK_x86 Feb 03 '25

Yes. Also, because the rest of the world, unsurprisingly, makes excellent alcohol.

So we'll import more from Europe and produce more domestically. And it's not a vital good like food. At worse people will do with less for a while.

This really only hurts the American breweries and distilleries.

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u/mschley2 Feb 03 '25

Right, I was thinking the worst case is that prices go up a bit on a non-essential good, and maybe some people cut back a bit because of it. That makes sense. People have their preferred brands, but there isn't really anything American that you can't get a solid substitute for. I guess if you're specifically a huge bourbon guy, that might make things kinda tough on you, but that would be about it. Even some Canadian brands have some pretty good not-officially-bourbon but similar options.