Comment by qlte
13 hours ago
Tariffs need to be credibly perceived as more or less permanent in whatever sector you're targeting for businesses to invest the large amounts of capital needed to reshore manufacturing.
Which is one of the main reasons Trump's arbitrary tariffs are ineffective policy, businesses see his capricious approach to tinkering with tariffs on a daily basis and instead make a rational decision to eat the costs under the assumption they are temporary.
Because he may change his mind in a week, SCOTUS may strike them down, Democrats win budgetary leverage in Congress, the right bribe gets paid for an exemption, etc. He could have enshrined them into legislation with the GOP's majority but politically they don't have enough support even within their own party, making the whole tariff saga pretty much pointless and self-defeating for any kind of long term restructuring of the US economy.
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