Say Domestic Cheese

A recent article in The Wall Street Journal titled, "Looming Tariffs Whet Appetite for Delicacies" illustrates the unintended consequences that occur when governments put tariffs on certain imports. The most obvious outcome is that the prices of the import increase dramatically. The upcoming tariff rates on most E.U. produced delicacies are slated to increase by 100%. While tariffs hurt imports, they can provide domestic companies will an opportunity to gain some market share. However, this approach restricts a free market. In a free market, the consumer is the ultimate judge of whether or not a product deserves to compete in the marketplace.

As the article indicates, the basis for this mini trade battle between the U.S. and the E.U. is a disagreement over an E.U. ban on hormone treated beef. Would not a better approach be for the consumers in the E.U. to be given the choice between purchasing beef with hormones versus beef without hormones? Until some sort compromise is reached, it looks as though Roquefort cheese lovers living in the U.S. better look for a domestic alternative or pay the price.