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What is the reason for tariffs (go on record)

Posted on 4/7/25 at 7:35 am
Posted by Suntiger
STG or BR or somewhere else
Member since Feb 2007
34562 posts
Posted on 4/7/25 at 7:35 am
There are so many vacillations on here for what the tariffs are trying to accomplish. So go on record and say what you think the purpose of the tariffs are.

- Bring back manufacturing to the US
- Tariffs are reciprocal and we’re being treated badly (pretty much debunked at this point)
- National security and deglobalization
- It’s a negotiating tactic and tariffs will be rolled back at some point
- Trying to break the economy to bring down interest rates and inflation
- The administration has no idea what it’s doing

It can’t be all of the above, because rolling back after negotiating won’t bring back manufacturing. And you can’t roll back tariffs without selling out national security if that’s your reason, etc. So what is it?


My take is that tariffs are a tax on consumers. So Trump is actually using tariffs as a national sales tax to roll back income tax. Congress is politically incapable of cutting spending or passing a national sales tax. So this is basically a national sales tax to offset spending and income tax. They can’t say this for political reasons, so that’s why we get the “throw everything against the wall and see what sticks” explanation.

Posted by Jjdoc
Cali
Member since Mar 2016
54655 posts
Posted on 4/7/25 at 7:38 am to
I think it's not an either or. Just like with the debt theory.


Its not that he is using tariffs for that. It more of a by product of it.
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 4/7/25 at 7:42 am to
Best case scenario we get more access to international markets.

Massive manufacturing is never coming back here when they’re 3 years away from a new president.
Posted by SM1010
Member since Oct 2020
1189 posts
Posted on 4/7/25 at 7:46 am to
Nobody knows.

Most people seem to think tariffs are just for negotiating leverage and will be rolled back soon. But since nobody knows for sure and the admin itself has floated the idea of replacing income taxes with tariffs I don't know how anyone can be 100% confident tariffs are temporary.

If they're here to stay we are in for a lot more downside once inflation and price increases start setting in. The pain will be long and ugly if that is the plan.
Posted by UltimaParadox
North Carolina
Member since Nov 2008
47215 posts
Posted on 4/7/25 at 7:51 am to
I agree it's a massive sales tax on consumers, which will help him justify extending the tax cuts without looking like he is growing the deficit.

I don't think there is any chance it's feasible it replaces income tax, considering that requires action by Congress probably within the next 2 years.

I think he is treating it as a negotiation tactic and will announce victory over a handful of countries when they agree to lower their tarriffs.

Don't think bringing back manufacturing jobs that are out sourced to most of these countries is an actual honest goal
Posted by Suntiger
STG or BR or somewhere else
Member since Feb 2007
34562 posts
Posted on 4/7/25 at 8:10 am to
quote:

Massive manufacturing is never coming back here when they’re 3 years away from a new president.


Agree with that.

quote:

Best case scenario we get more access to international markets.


Curious as to your thoughts on this? Because of rolling back tariffs by other countries? Other countries agree to increased trade?

I think we might lose some business. Other countries might be more hesitant to do business with us now as we’ve unturned an 80 year trading plan. You see S. Korea, Japan and China coming together on a trade agreement. That’s crazy! That might be market share the US loses out on at some point.

I could be (and probably am) totally wrong though.
Posted by Motownsix
Boise
Member since Oct 2022
2618 posts
Posted on 4/7/25 at 8:51 am to
I have become more and more convinced that the goals of all this chaos are political rather than economic.
Posted by tigerfoot
Alexandria
Member since Sep 2006
58927 posts
Posted on 4/7/25 at 8:54 am to
quote:

- The administration has no idea what it’s doing
mostly
quote:

- It’s a negotiating tactic and tariffs will be rolled back at some point
kinda
quote:

- Trying to break the economy to bring down interest rates and inflation
coming around to this a touch.
quote:

- Tariffs are reciprocal and we’re being treated badly (pretty much debunked at this point)
Shouldve fixed these isolated cases with no one even knowing about em.
quote:

- Bring back manufacturing to the US
I pray, but not hopeful
Posted by GoCrazyAuburn
Member since Feb 2010
37360 posts
Posted on 4/7/25 at 9:14 am to
quote:

Bring back manufacturing to the US


To a degree this, through either growing our exports and overall business growth or some businesses being brought back here. I don't think this is going to be some massive shift in manufacturing globally though, some industries it might. Many won't change drastically, but businesses should be able to grow internationally.

quote:

Tariffs are reciprocal and we’re being treated badly (pretty much debunked at this point)

Not sure what you are claiming has been debunked here? I think there is some to this but mainly because of this point:
quote:

It’s a negotiating tactic and tariffs will be rolled back at some point

They've said multiple times they want the other countries to eliminate their tariffs on our goods as well as negotiating new agreements to lower some of the entry barriers our products have on global markets. This is the main goal here.

quote:

Trying to break the economy to bring down interest rates and inflation

Some of this, though they aren't "breaking the economy". They have also flat out said they need to get the T-bill rate lower to refinance our debt.
Posted by Bdiddy
Member since Jul 2021
281 posts
Posted on 4/7/25 at 9:38 am to
If the administration won't go on record, how can I even guess?
Posted by GetCocky11
Calgary, AB
Member since Oct 2012
53156 posts
Posted on 4/7/25 at 9:42 am to
quote:

dmin itself has floated the idea of replacing income taxes with tariffs


Posted by RoyalWe
Prairieville, LA
Member since Mar 2018
3681 posts
Posted on 4/7/25 at 10:20 am to
When I read the title, I thought you meant the tariffs other countries put on us.
Posted by Motownsix
Boise
Member since Oct 2022
2618 posts
Posted on 4/7/25 at 10:23 am to
quote:

If the administration won't go on record, how can I even guess?


This is how you know this whole entire endeavor is a colossal mistake of biblical proportions. No great economic plan would be executed in such a chaotic way.
Posted by SlidellCajun
Slidell la
Member since May 2019
13496 posts
Posted on 4/7/25 at 10:23 am to
The rationale was multi pronged

1.Level trading field
2.Bring jobs back to US with incentive to build manufacturing plants here
3.Raise tax revenue without having to tax Americans

Posted by The_Duke
Member since Nov 2016
3872 posts
Posted on 4/7/25 at 10:29 am to
You forgot the fentanyl tarrifs
Posted by Triple Bogey
19th Green
Member since May 2017
6186 posts
Posted on 4/7/25 at 10:57 am to
This shite is so dumb and you have tons of people on the right trying to spin it, saying that average normal working class people don't have any connection to the stock market and that is just obviously not true. Even if you were going to work on the trade imbalances, this is not the correct way to go about it.
Posted by Auburn1968
NYC
Member since Mar 2019
22996 posts
Posted on 4/7/25 at 7:05 pm to
Trump is poking everyone with a stick to get their attention which has been neglected for decades. Some manufacturing will come home or set up domestically. Some trade will be more open to American products.

Back in my very much younger days in the 1960's there were hundreds of textile mills and related manufacturing businesses across the South. When they dropped tariffs on India's textiles, those American businesses died out almost all at once even though the South had lots of cotton and other resources.





Posted by 3nOut
I don't really care, Margaret
Member since Jan 2013
30684 posts
Posted on 4/7/25 at 7:53 pm to
quote:

Trump is poking everyone with a stick to get their attention which has been neglected for decades. Some manufacturing will come home or set up domestically. Some trade will be more open to American products.


This is where I’m landing. As many complaints as I have with Trump, he knew what he is doing.

I don’t take tariffs or trade imbalances as 0 sum game.

We will never have an equal trading partnership with most of the world. It’s impossible for us to have equality with Madagascar, Lesotho, etc. that’s ridiculous.


That being said a lot of the world gets to have a benefit of us having the world’s most affluent and third largest customer base. Other countries have basically built an economy off of us taxing, regulating, and minimum waging ourselves out of a production workforce. When you combine that with Trump’s view on nato and military spending, it makes sense.

We have homeless people and unaffordable healthcare in America while large portions of the world can avoid those things largely off of the backs of American globalization. It’s not every country. I.e. Sweden doesn’t have free healthcare off of the backs of America, but a lot of the world gets a benefit of not having to play world police to care for their citizens.

I’m not saying Trump is correct. I’m not saying tariffs are good. I’m just saying that Trump is poking things due to the imbalances he see.
Posted by BottomlandBrew
Member since Aug 2010
28338 posts
Posted on 4/7/25 at 8:17 pm to
quote:

You forgot the fentanyl tarrifs


Funny how this just went away. Problem solved, I guess.
Posted by dgnx6
Member since Feb 2006
78739 posts
Posted on 4/7/25 at 9:57 pm to
quote:

It can’t be all of the above, because rolling back after negotiating won’t bring back manufacturing. And you can’t roll back tariffs without selling out national security if that’s your reason, etc. So what is it?



I don’t believe every country is just going to go to zero tariffs. Some will and some will keep tariffs which we then reciprocate.

The main reason to tariff everyone is China. You can’t just tariff China.

And once you get some countries on board I suspect you can remove tariffs on countries we really don’t do that much business with or don’t actually have a deficit with.


And let’s say every country does go to zero. You can still bring jobs back because it will be easier to sell in other countries. You target certain industries you want to grow. If that’s autos because you will be selling more cars to Europe and China, then we will need to make more cars to sell.




This post was edited on 4/7/25 at 9:59 pm
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