Am I being dumb here?
Let’s say they’re bicycles. Effect on domestic consumers is 0.6m of them paying $30 extra for an imported bicycle = $18m loss
Domestic producers get to sell an additional 0.2m bicycles @ $300 each = $60m gain
Government takes in $30 on 0.6m imported bicycles = $18m gain
Overall effect = $60m + $18m – $18m = $60m gain
The exercise is supposed to show tariffs damage the overall economy, so what am I missing?