This is assuming America is even capable of producing what it needs to generate jobs or investment. There’s no point in taxing coffee from Africa; America doesn’t produce competing coffee! There’s no point in tariffing specialized electronics from China that Apple needs; US literally doesn’t have the capacity to produce these and the investment to do so will be inefficient as American labor is better put to service and knowledge sector work to produce more Apple product designs (just one example).
This is just going to make the American economy more inefficient, less able to compete internationally, and devalue American interests globally, which means America will have less clout to privilege their citizens with.
A developing country cannot possibly lower their trade deficit with USA (which is what these tariffs are based on, not if the tariffs exist in the country’s side). They literally are too poor to buy our stuff, but they can sell their stuff cheaply. This is how I get to have luxury Ethiopian coffee for less than 20$/month. There is no domestic coffee that’s competing with Ethiopian coffee (Hawaiis coffee is doing just swell).
Like, be for real, what kind of domestic banana industry do we have? We don’t, are we seriously going to be “investing” into banana crops in America? Tariffs on bananas is bananas.
> There will be more of a hit as we transition to domestic manufacturing, but it will generate jobs, investment, and keep money in our economy.
That's not how it works. It protects inefficient companies, reduces competition, and lets them pocket more of consumers money. I'm sure they will 'share' it with their labor force.
The US is and has been fully employed without it, so it can't really add jobs. The US has plenty of investment, and it will cut foreign investment - many of those factories are owned by foreign companies. It shifts the workforce to less productive work which will hurt the economy as well.
It will keep money out of our economy too. Economics doesn't work by keeping money in your pocket.
> There will be more of a hit ... but it will generate jobs, investment, and keep money in our economy.
Have you heard of 'trickle-down economics'? That was the theory that if we cut taxes on the wealthy, they will spend/invest more and it will 'trickle down' to everyone else. Guess what happened? Only the first step - the certain one - ever happened. The magical future never did.
It's the same here. It's just a hit for the benefit of a few; that's it. No economist thinks protectionism boosts the economy.
> In addition, other countries could simply loosen their restrictions and tariffs.
The DARVO idea that others are somehow blocking US investment - which dominates the world - has no foundation. Poor countries, of course, don't want their entire economy controlled by some trader on Wall Street.
> There will be more of a hit as we transition to domestic manufacturing, but it will generate jobs, investment, and keep money in our economy.
I would be very surprised if this is the result, but I'm willing to be very surprised.
For now, though, the manufacturing company that I work for, as well as a couple of others I know about, are likely going to close their facilities in the US because of these tariffs. It's simply not economically feasible to pay a tax every time we ship materials from one plant to another in a different country.
If they can't operate efficiently in the US, then they're looking at just ignoring the US market entirely. The rest of the world is a plenty large enough market to address.
>you choose to purchase foreign over domestic, but you have that option.
where can i buy a domestic made iPhone?
>as we transition to domestic manufacturing
manufacturing is capital intensive and has low margins and thus is adversely affected by 2 things the most - unstable environment and high volume based taxes, which both has just significantly increased.
Remember those five other times when Republicans partnered with companies and individuals to build factories here in the US only for it to never occur? Like the Foxconn factories in Wisconsin?
This is assuming America is even capable of producing what it needs to generate jobs or investment. There’s no point in taxing coffee from Africa; America doesn’t produce competing coffee! There’s no point in tariffing specialized electronics from China that Apple needs; US literally doesn’t have the capacity to produce these and the investment to do so will be inefficient as American labor is better put to service and knowledge sector work to produce more Apple product designs (just one example).
This is just going to make the American economy more inefficient, less able to compete internationally, and devalue American interests globally, which means America will have less clout to privilege their citizens with.
There's no point in Africa taxing imports from us under that logic?
They lower it, we lower it.
A developing country cannot possibly lower their trade deficit with USA (which is what these tariffs are based on, not if the tariffs exist in the country’s side). They literally are too poor to buy our stuff, but they can sell their stuff cheaply. This is how I get to have luxury Ethiopian coffee for less than 20$/month. There is no domestic coffee that’s competing with Ethiopian coffee (Hawaiis coffee is doing just swell).
Like, be for real, what kind of domestic banana industry do we have? We don’t, are we seriously going to be “investing” into banana crops in America? Tariffs on bananas is bananas.
> There will be more of a hit as we transition to domestic manufacturing, but it will generate jobs, investment, and keep money in our economy.
That's not how it works. It protects inefficient companies, reduces competition, and lets them pocket more of consumers money. I'm sure they will 'share' it with their labor force.
The US is and has been fully employed without it, so it can't really add jobs. The US has plenty of investment, and it will cut foreign investment - many of those factories are owned by foreign companies. It shifts the workforce to less productive work which will hurt the economy as well.
It will keep money out of our economy too. Economics doesn't work by keeping money in your pocket.
> There will be more of a hit ... but it will generate jobs, investment, and keep money in our economy.
Have you heard of 'trickle-down economics'? That was the theory that if we cut taxes on the wealthy, they will spend/invest more and it will 'trickle down' to everyone else. Guess what happened? Only the first step - the certain one - ever happened. The magical future never did.
It's the same here. It's just a hit for the benefit of a few; that's it. No economist thinks protectionism boosts the economy.
> In addition, other countries could simply loosen their restrictions and tariffs.
The DARVO idea that others are somehow blocking US investment - which dominates the world - has no foundation. Poor countries, of course, don't want their entire economy controlled by some trader on Wall Street.
> There will be more of a hit as we transition to domestic manufacturing, but it will generate jobs, investment, and keep money in our economy.
I would be very surprised if this is the result, but I'm willing to be very surprised.
For now, though, the manufacturing company that I work for, as well as a couple of others I know about, are likely going to close their facilities in the US because of these tariffs. It's simply not economically feasible to pay a tax every time we ship materials from one plant to another in a different country.
If they can't operate efficiently in the US, then they're looking at just ignoring the US market entirely. The rest of the world is a plenty large enough market to address.
Which restrictions and tariffs are these?
You want me to detail all countries' tariff policies?
Are you insinuating that these countries have no tariffs in place, or...?
I believe it's quite clear the imbalance of many markets. Automobiles being the most distinct, but every product tariffed varies by country.
edit: rate-limited, I'm not allowed to talk anymore I guess...
I’m not the same person, but I’ll go past just insinuating.
Almost no country has broad tariffs at the level that our “reciprocal” tariffs are being applied at.
Can you find any example in the top 15 of our trading partners that have tariffs that meet or exceed our “reciprocal” tariffs?
>> In addition, other countries could simply loosen their restrictions and tariffs.
You can keep your chlorine washed chicken. I’m sure most of the UK will be happy to pay 10% tariffs if it keeps those out.
Sounds good to me :)
You're missing out, our chicken is amazing.
But 10% on your imports is a good trade, I agree.
>you choose to purchase foreign over domestic, but you have that option.
where can i buy a domestic made iPhone?
>as we transition to domestic manufacturing
manufacturing is capital intensive and has low margins and thus is adversely affected by 2 things the most - unstable environment and high volume based taxes, which both has just significantly increased.
And thus you have the $500 billion investment from Apple to build here.
Remember those five other times when Republicans partnered with companies and individuals to build factories here in the US only for it to never occur? Like the Foxconn factories in Wisconsin?
How many times are you going to fall for it?
https://www.apple.com/newsroom/2021/04/apple-commits-430-bil...
Like this one that they just waited out and never did?