part of those expectations is just that tariff incidence will be shared. pre-tariff arrangements are sticky, buyers want to buy and sellers want to sell. now there’s a new cost. that will discourage transactions to a degree, but remaining transactors will pay and share the cost. 1/

currency depreciation is how sellers cover thr portion of the cost. it’s better than individual exporters reducing domestic currency prices, which wld require renegotiation of eg labor contracts or put firm solvency at risk. domestic currency profitability is unchanged, its FX value is reduced. /fin