Tariffs aren’t new. But the *way* Trump is using them is relatively new.
When they’re used intelligently and in a targeted way, tariffs can be a great way of protecting local industries and competitive advantages. Many countries use them in that way today.
But arbitrarily and needlessly slapping tariffs on almost every country on Earth (no…
Tariffs aren’t new. But the *way* Trump is using them is relatively new.
When they’re used intelligently and in a targeted way, tariffs can be a great way of protecting local industries and competitive advantages. Many countries use them in that way today.
But arbitrarily and needlessly slapping tariffs on almost every country on Earth (not Russia, obviously) is economic mutually assured destruction. Except, given China’s trade dominance, it’s extremely likely Trump hurts America more than he does China in the long term.
I hope that you don't think I was endorsing what he is doing.
Trillions of words have been written about how bad Trump is so there is no need for me to add to the drone. His tariffs raise prices and are crushing my retirement savings.
My point was that any possible benefit of returning factories is not likely to happen until he is no longer in office, if at all on a scale that matters, and I doubt that his predecessor will continue them and not try to restore relationships with other countries. Small shops can be established fairly quickly but for big things, factories, moving equipment (loosing local capacity) and training are required. That takes time to take place and bring up to speed. I've taken part in that.
Short term pain and a low likelihood of long-term gain. I'm not a fan.
“I hope that you don't think I was endorsing what he is doing.”
No, not at all. I was just acknowledging that tariffs, in and of themselves, aren’t a bad thing. Trump’s handling of them has been so terrible that I think they’ve got a bad rap, but as you say, they aren’t exactly new and can be good.
As for factories moving back to the U.S. I think that ship has mostly sailed. Manufacturing in China is so much cheaper thanks to their effective slave labour, that any businesses that do come back will likely be mostly automated.
We wanted cheaper products, we turned a blind eye to the Chinese working conditions that made those prices possible, and we know we would never accept them for ourselves, meaning it’s basically impossible to compete.
China’s takeover of manufacturing is complete. Maybe I’m missing something, but I don’t see any possibility of going back. The only country that might compete is India, and maybe African countries in a few years. But America has better get used to its trade deficit.
Tariffs aren’t new. But the *way* Trump is using them is relatively new.
When they’re used intelligently and in a targeted way, tariffs can be a great way of protecting local industries and competitive advantages. Many countries use them in that way today.
But arbitrarily and needlessly slapping tariffs on almost every country on Earth (not Russia, obviously) is economic mutually assured destruction. Except, given China’s trade dominance, it’s extremely likely Trump hurts America more than he does China in the long term.
I hope that you don't think I was endorsing what he is doing.
Trillions of words have been written about how bad Trump is so there is no need for me to add to the drone. His tariffs raise prices and are crushing my retirement savings.
My point was that any possible benefit of returning factories is not likely to happen until he is no longer in office, if at all on a scale that matters, and I doubt that his predecessor will continue them and not try to restore relationships with other countries. Small shops can be established fairly quickly but for big things, factories, moving equipment (loosing local capacity) and training are required. That takes time to take place and bring up to speed. I've taken part in that.
Short term pain and a low likelihood of long-term gain. I'm not a fan.
“I hope that you don't think I was endorsing what he is doing.”
No, not at all. I was just acknowledging that tariffs, in and of themselves, aren’t a bad thing. Trump’s handling of them has been so terrible that I think they’ve got a bad rap, but as you say, they aren’t exactly new and can be good.
As for factories moving back to the U.S. I think that ship has mostly sailed. Manufacturing in China is so much cheaper thanks to their effective slave labour, that any businesses that do come back will likely be mostly automated.
We wanted cheaper products, we turned a blind eye to the Chinese working conditions that made those prices possible, and we know we would never accept them for ourselves, meaning it’s basically impossible to compete.
China’s takeover of manufacturing is complete. Maybe I’m missing something, but I don’t see any possibility of going back. The only country that might compete is India, and maybe African countries in a few years. But America has better get used to its trade deficit.