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But you also gotta consider that your exports you'll be cutting off from them will cause your good prices to drop over the next few weeks with the increase in supply and decrease in demand. This will probably cause a larger hit long term on you than it'll look.
What you wanna do is see what the benefit is to YOU to embargo the other nation. Will they run into a good shortage or expensive good issue? Will it cause a military expensive good or shortage? These hurt the enemy economy more than the cost it will have on you to lose out on those profits and increase your good costs, reducing your industry productivity and taxation revenue.
Thanks for the replies. It certainly is an interesting decision to make. Austria imports a ton of military goods from me and is currently in a war, but at the same time these seem like very lucrative trade routes for my people +40 etc. It would be nice if the game provided some feedback to this decision so I could understand how the decision might impact both my country and my people better.