First, they violate trade agreements that we’re signatories to. That means that we get sanctions, and those sanctions cost us money.
Second, tariffs get passed to the end user. Yes, yes, in the very long run, high tariffs make it more profitable to build a manufacturing base domestically. In the long run. And assuming that the next administration doesn’t sweep the tariffs away. In the short run, it’s higher prices for consumers, because the increased cost gets passed along. In the long run, well, high tariffs are a shaky foundation to build a domestic business on, so it’s unlikely that anyone is going to want to invest hundreds of millions of dollars in domestic manufacturing when it can all be made unprofitable and you can lose your investments, all with a stroke of a pen.
Yeah, we need a domestic manufacturing base rather than importing everything. Tariffs by themselves aren’t going to do that.
I don’t know who you are, but you make a lot more sense on this topic than Scott Adams does. Admittedly, using him as a comparison on pretty much anything is setting that bar really low. But hey, you cleared it.
So, there’s a couple problems with tariffs.
First, they violate trade agreements that we’re signatories to. That means that we get sanctions, and those sanctions cost us money.
Second, tariffs get passed to the end user. Yes, yes, in the very long run, high tariffs make it more profitable to build a manufacturing base domestically. In the long run. And assuming that the next administration doesn’t sweep the tariffs away. In the short run, it’s higher prices for consumers, because the increased cost gets passed along. In the long run, well, high tariffs are a shaky foundation to build a domestic business on, so it’s unlikely that anyone is going to want to invest hundreds of millions of dollars in domestic manufacturing when it can all be made unprofitable and you can lose your investments, all with a stroke of a pen.
Yeah, we need a domestic manufacturing base rather than importing everything. Tariffs by themselves aren’t going to do that.
I don’t know who you are, but you make a lot more sense on this topic than Scott Adams does. Admittedly, using him as a comparison on pretty much anything is setting that bar really low. But hey, you cleared it.