The public needs to understand that tariffs aren't meant to punish other countries (which is what is being sold) - they are meant to change domestic behavior.
If they're supposed to encourage industrial development at home, they've failed on that front. Building new factories requires years of commitment and billions of dollars, but the current administration has shown no interest in actually investing in that development. Meanwhile, the raw materials that would be necessary for a factory are more expensive precisely because of the tariffs, making new industry even less likely. Finally, the very dubious legal ground on which the tariffs are based means that no one is sure they'll be around to the end of this administration, much less into the next, so there's little interest in adapting long-term plans to a temporary state of affairs.
If they're supposed to encourage consumers to buy domestic, they've failed on that count too. Many goods simply are not available manufactured in the US (see above). If the tariffs were applied gradually and incrementally, maybe people would adapt, but from the consumer's mount of view, everything just gets more expensive, so what are they supposed to do? Again, applying tariffs to raw materials means that it's impossible for American businesses to undercut foreign imports even if they wanted to.
Like everything from this administration, the tariff are an impulsive decision based on poor economic understanding and incompetent execution.
Sure, they work via changing domestic behavior. But the purpose of that change is what's important. They can be used to gently (as compared to sanctions) shift demand away from a particular country, or alternatively to apply pressure to a sector to bring it on shore.
> They can be used to gently (as compared to sanctions) shift demand away from a particular country
That works when those countries are selectively tariffed while others are let off. Blindly applying tariffs to whatever satisfies the mood is not the way.
> or alternatively to apply pressure to a sector to bring it on shore.
For this to work, the cost of onshore production must be lower than the tariffed price. The inputs must be made cheaper and not tariffed. Again the US administration is not doing any of these strategically.
"Sure, they work via changing domestic behavior. But the purpose of that change is what's important. They can be used to gently (as compared to sanctions) shift demand away from a particular country, or alternatively to apply pressure to a sector to bring it on shore"
I have talked to some purchasing people at my company and it seems it's going exactly the other way. The company is moving as much production as possible away from the US to serve the international market without paying for tariffs.
hackyhacky|17 days ago
What domestic behavior specifically?
If they're supposed to encourage industrial development at home, they've failed on that front. Building new factories requires years of commitment and billions of dollars, but the current administration has shown no interest in actually investing in that development. Meanwhile, the raw materials that would be necessary for a factory are more expensive precisely because of the tariffs, making new industry even less likely. Finally, the very dubious legal ground on which the tariffs are based means that no one is sure they'll be around to the end of this administration, much less into the next, so there's little interest in adapting long-term plans to a temporary state of affairs.
If they're supposed to encourage consumers to buy domestic, they've failed on that count too. Many goods simply are not available manufactured in the US (see above). If the tariffs were applied gradually and incrementally, maybe people would adapt, but from the consumer's mount of view, everything just gets more expensive, so what are they supposed to do? Again, applying tariffs to raw materials means that it's impossible for American businesses to undercut foreign imports even if they wanted to.
Like everything from this administration, the tariff are an impulsive decision based on poor economic understanding and incompetent execution.
jqpabc123|17 days ago
In other words, they are a regressive tax --- pure and simple.
thijson|17 days ago
fc417fc802|17 days ago
ivell|17 days ago
That works when those countries are selectively tariffed while others are let off. Blindly applying tariffs to whatever satisfies the mood is not the way.
> or alternatively to apply pressure to a sector to bring it on shore.
For this to work, the cost of onshore production must be lower than the tariffed price. The inputs must be made cheaper and not tariffed. Again the US administration is not doing any of these strategically.
vjvjvjvjghv|17 days ago
I have talked to some purchasing people at my company and it seems it's going exactly the other way. The company is moving as much production as possible away from the US to serve the international market without paying for tariffs.
brodouevencode|16 days ago
Good point.
charcircuit|17 days ago
The purpose of a thing is what is does. If a tariff can be used to stop a war, then tariffs are meant as a strategic bargaining chips.
wvenable|17 days ago
CamperBob2|17 days ago