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Should tariffs be applied to foreign labor (engineering, HR, accounting, customer support)

Posted on 10/5/26 at 11:45 am
Posted by Ramblin Wreck
Member since Aug 2011
4581 posts
Posted on 10/5/26 at 11:45 am
This is particularly an issue for engineering and designers. We are basically doing the same thing to these job families as we did to US manufacturing. BTW, engineering schools in most of the countries where this work is farmed out focus on teaching how to run engineering software programs versus engineering fundamentals.

Before anyone claims I’m just concerned about my own job, I’m retired. My company was big into pressuring us and our consultants to farm work out to India, Venezuela, Mexico, or anywhere we could save a dollar on paper. Paying invoices required me to deal with people on every continent. I can confirm that laziness and incompetence exists all over the world.
Posted by jpainter6174
Boss city
Member since Feb 2014
6865 posts
Posted on 10/5/26 at 11:47 am to
So we can be double hosed, lost jobs overseas and then you have to pay tariffs for using companies who have said overseas interest?

Tariffs are paid by the end user... AKA us...
Posted by Gee Grenouille
Member since Jul 2018
8829 posts
Posted on 10/5/26 at 11:49 am to
Would be interesting to see if a State could add an additional tax this way.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
38082 posts
Posted on 10/5/26 at 11:49 am to
Yes, we should de incentivize off shoring labor even more so than manufacturing.

Posted by BitBuster
Lafayette
Member since Dec 2017
2051 posts
Posted on 10/5/26 at 11:51 am to
AI is going to erase most of these offshored jobs in the next 5 years. Probably not worth the governmental red tape to initiate something like that.
We need to make sure AI stays local, though. Maybe tarrifs on US companies using foreign AI.
Posted by nealnan8
Atlanta
Member since Oct 2016
5350 posts
Posted on 10/5/26 at 11:56 am to
In this scenario, who would be responsible for paying the tariff up front?
Posted by Ramblin Wreck
Member since Aug 2011
4581 posts
Posted on 10/5/26 at 11:59 am to
quote:

Tariffs are paid by the end user... AKA us...

In this case, the end users are Chevron, Exxon, and every other company that heavily uses engineering resources. What most of the management in these companies don’t understand or want to understand is that there really isn’t any savings. Without going into details, anyone that has had to deal with “high value engineering” realizes this. There is also a huge advantage to having someone physically at the location where something is being engineered and installed.
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
83361 posts
Posted on 10/5/26 at 12:01 pm to
quote:

So we can be double hosed, lost jobs overseas and then you have to pay tariffs for using companies who have said overseas interest?


If it's more expensive to offshore those jobs companies will have nothing to gain by doing it.
Posted by SloaneRanger
Upper Hurstville
Member since Jan 2014
14723 posts
Posted on 10/5/26 at 12:05 pm to
Yes, next question.
Posted by Harry Caray
Denial
Member since Aug 2009
21150 posts
Posted on 10/5/26 at 12:17 pm to
quote:

So we can be double hosed, lost jobs overseas and then you have to pay tariffs for using companies who have said overseas interest?

Or, hear me out, American companies can stop outsourcing their labor to Indians.
Posted by UFFan
Planet earth, Milky Way Galaxy
Member since Aug 2016
4269 posts
Posted on 10/5/26 at 12:19 pm to
I can understand why people like the idea in theory, but I’m not really sure how it’s supposed to work in practice.

Usually, tariffs are on a physical object. Like impose a tariff on a pear or something.

I don’t know how you tax something intangible like an HR department. Are you going to come up with some legal definition of what an HR department even is?

Aside from that, you’d have to make the tariffs really, really high to make them worthwhile. That’s one of the problems that Trump’s tariffs already face. These companies are paying these factory workers in third world shitholes at most 1/10 as much as they’d have to pay US workers. So you’d have to make the tariffs like at least 1,000% in order to bring factory labor home, maybe something like 700% if you take into account the cost of shipping the goods. And for call centers, the businesses don’t have to take shipping costs into account.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
38082 posts
Posted on 10/5/26 at 12:21 pm to
quote:

Are you going to come up with some legal definition of what an HR department even is?


We already have this

Labor is WAY easier to track than goods
Posted by Harry Caray
Denial
Member since Aug 2009
21150 posts
Posted on 10/5/26 at 12:22 pm to
quote:

Aside from that, you’d have to make the tariffs really, really high to make them worthwhile. That’s one of the problems that Trump’s tariffs already face. These companies are paying these factory workers in third world shitholes at most 1/10 as much as they’d have to pay US workers. So you’d have to make the tariffs like at least 1,000% in order to bring factory labor home, maybe something like 700% if you take into account the cost of shipping the goods. And for call centers, the businesses don’t have to take shipping costs into account.

Then make it illegal to employ third world shithole workers at a higher ratio than American citizens. If they want to open a factory in India, the same functioning factory needs to be open and operating in America, staffed by American citizens.
Posted by Ramblin Wreck
Member since Aug 2011
4581 posts
Posted on 10/5/26 at 12:31 pm to
We are probably not far from being forced to having a video appointment with a doctor in India versus having the choice to see a doctor in person. Kind of joking, kind of serious.
Posted by UFFan
Planet earth, Milky Way Galaxy
Member since Aug 2016
4269 posts
Posted on 10/5/26 at 12:31 pm to
How do you offshore an engineering job? Don’t engineering jobs require the engineer to frequently be present at the site of the building that’s being built?

I can see how you can offshore the other jobs you mentioned (accounting, HR, customer support), but I don’t understand how you can offshore an engineering job.
This post was edited on 10/5/26 at 12:33 pm
Posted by Upperdecker
St. George, LA
Member since Nov 2014
34055 posts
Posted on 10/5/26 at 12:32 pm to
quote:

Without going into details, anyone that has had to deal with “high value engineering” realizes this. There is also a huge advantage to having someone physically at the location where something is being engineered and installed.

Two things that are very difficult to justify on paper in a project proposal, while the 75%+ reduction in engineering costs from sending the work to India are very easy to calculate and justify. Unfortunately this is the reality that the people at the top making money decisions don’t have the field experience nor the data to show why you’re right and off-shoring makes things worse
Posted by Upperdecker
St. George, LA
Member since Nov 2014
34055 posts
Posted on 10/5/26 at 12:34 pm to
quote:

How do you offshore an engineering job? Don’t engineering jobs require the engineer to frequently be present at the site of the building that’s being built?

For government/public work you need a PE “in charge” of the work. For companies like Exxon where the work is private, they don’t need a PE as they shoulder the burden of public safety. So they take the risk when sending things to India for a 75% discount
Posted by Upperdecker
St. George, LA
Member since Nov 2014
34055 posts
Posted on 10/5/26 at 12:39 pm to
quote:

I don’t know how you tax something intangible like an HR department. Are you going to come up with some legal definition of what an HR department even is?

Companies pay a payroll tax for all employees. And employees pay income tax. But neither would work for offshoring since the employees aren’t in the US. And any law to pay tax on employees not in the US would just result in companies using a 3rd party for the exact same service in the same country, potentially the same offshore workers
Posted by Ramblin Wreck
Member since Aug 2011
4581 posts
Posted on 10/5/26 at 12:40 pm to
quote:

How do you offshore an engineering job? Don’t engineering jobs require the engineer to frequently be present at the site of the building that’s being built?
Local person takes measurements or scans the field equipment, new equipment drawings are scanned and emailed, calculations and drawings are done over seas.

Company thinks it saved 75% on engineering. In reality lots of things are missed by the engineer and designers not being in the field, the engineers don’t personally speak with the on site operators and maintenance people for additional insight, calculations and drawings are of poor quality and require rework multiple times, and all this creates less of a demand for US engineers and designers while making wages lower. Lots of field revisions are required and the construction contractors charge for scope revisions. But hey, we saved 75% on engineering hourly wages even though engineering hours increased and large field revisions and delays occurred. Those costs get blamed on something else so management can claim their savings.
This post was edited on 10/5/26 at 12:46 pm
Posted by BoostAddict
Member since Jun 2007
3295 posts
Posted on 10/5/26 at 12:40 pm to
quote:

For government/public work you need a PE “in charge” of the work. For companies like Exxon where the work is private, they don’t need a PE as they shoulder the burden of public safety. So they take the risk when sending things to India for a 75% discount


Companies like Exxon don't design most of their stuff. You're right that plant engineers often don't need or get their PE licenses for in house jobs, but if a consultant does the work they would need PE licenses.
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