The reason it's a hidden market is because there is excess demand given the price that is being charged. When the price of something scarce—concert tickets, Saturday night tables, theme park rides—is set far below what the market would naturally bear, the scarcity doesn't disappear. It just moves sideways, into queues, lotteries, intermediaries, and perks—into hiding, in other words.
LAWRENCE O'DONNELL: In the cabinet room today, the president, whose policies and decisions led to the murder in the streets of Minneapolis, hallucinated about phone conversations that never happened with leaders of foreign countries in which he told them that they will have to increase the price of prescription drugs in their countries so that the price of prescription drugs in the United States can come down. That formulation is obviously insane on its face.
"The plan was met with skepticism from many economists, and it is likely to be challenged in court as beyond the constitutional limits of the president."
If suppliers want to fight for an exemption, they must file notice three months in advance by filling out forms detailing the impact of tariffs on their products and provide evidence.