These people are out of their minds.

  • multitotal@lemmygrad.mlOP
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    1 month ago

    The problem is that US manufacturing is dependent on China so that instead of building domestic factories to supply them, companies will just pay the tariffs and pass the costs onto the consumer.

    I think they’re hoping that people won’t buy the products, forcing companies to shut down or find new suppliers. This would cause a dip and ideally a rebound. The problem is that the people in the US and their infrastructure cannot survive a dip. The US is overspending, something’s got to give, and I’m guessing they’ll continue cutting aid to everyone but Israel.

    • ☆ Yσɠƚԋσʂ ☆@lemmygrad.ml
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      1 month ago

      On top of that, as we saw with Russian sanctions, it’s very difficult to enforce such things effectively. For example, Chinese could just build factories in Mexico, or sell stuff through third parties. This becomes very difficult to track, especially when trade is being done increasingly outside the dollar. So, the US is guaranteed to lose this game of whack-a-mole trying to enforce their tariffs.

      Ultimately, the selection pressures of capitalism favor companies that can generate more profit than their competitors. I also don’t see customers giving a fuck where their stuff is made. Especially given that the economic situation is not looking all that great. People will buy stuff that’s cheapest to save money.

      • multitotal@lemmygrad.mlOP
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        1 month ago

        I also don’t see customers giving a fuck where their stuff is made

        Exactly. They are counting on people’s patriotism, but feelings of nationalism can’t pay the bills.