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.
array_key_first|1 month ago
matwood|1 month ago
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
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?