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hallole | 1 month ago

Yeah essentially this. In my mental model, tariffs give an advantage to domestic suppliers / penalize foreign suppliers, and thus encourage domestic production by making it more viable. And bringing manufacturing back to the U.S. has been a pretty big GOP selling point.

discuss

order

array_key_first|1 month ago

The implementation matters a lot. When fiscal policy is hand-wavy and unreliable, manufacturers can't risk huge domestic capital investment. They're trying to strategize on the order of decades, this administration is more so acting on the order of weeks.

matwood|1 month ago

> And bringing manufacturing back to the U.S. has been a pretty big GOP selling point.

Which is comical since the US is the #2 manufacturer in the world behind China. And that makes sense given the absolute size of China. The US manufacturing output continues to increase every year. What's not increasing are the manufacturing jobs because of automation.

If there are strategic industries the US wants bolster, like microchips, there are ways to handle that through long term incentives. The CHIPS act did this, but was killed by Trump because Biden put it in place.

mirekrusin|1 month ago

> (...) Donald Trump (...) asked (...) to "get rid" of the (...) act. (...) However, as of October 2025 the Trump administration has instead preserved the Act, even adding an additional 10 percentage points to the advanced semiconductor manufacturing tax credit. (...)

https://en.wikipedia.org/wiki/CHIPS_and_Science_Act

Tariffs and this act are not mutually exclusive, they can be complementary and seems both are currently in place?