that, like the tax revenue, really has nothing to do with any sort of economic theory. it's an intentional attempt to drive costs up to incentivize local production for that end in itself, at the purposeful expense of profit maximization.
it will lead lead to lower consumption and higher costs, but they're doing that on purpose. they want that.
what can we say to that? we need to find a new market.
however, the americans should realize that if they're going to intentionally block imports of goods like copper, then they should accept our decision to keep their milk out because we don't like their use of hormones. they should see that as a concession.