What happens if European exporters suddenly face dropping returns for their exports in the US?
Capital goods aside, the luxury good market is important and arguably very subject to rising prices. And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
Luxury goods, as positional goods, tend to have negative price elasticity - ie the more expensive they are, the better they sell because they get even more exclusive (which is what you buy).
Airbus suffers. Some manufacturers suffer. Others are price-makers (cf - wind turbine manufacturers ...) Many have booming markets in Europe and the Middle East. Many enjoy cheaper inputs thanks to the lower dollar.
There's no obvious breaking point, if at all. In the long run, we're all dead. John Maynard Keynes
