Colombia sells coffee for $5
Brazil sells coffee for $5.50
USA puts 25% tariff on Colombia.
Cost of importing coffee from Colombia increases to $6.25
USA redirects coffee purchases to Brazil as it is relatively cheaper.
USA pays 10% more for coffee.
Colombia loses out on sales.
Colombia sells coffee for $5
Brazil sells coffee for $5.50
USA puts 25% tariff on Colombia.
Cost of importing coffee from Colombia increases to $6.25
USA redirects coffee purchases to Brazil as it is relatively cheaper.
USA pays 10% more for coffee.
Colombia loses out on sales.