re: Will tariffs really increase domestic manufacturing?

quote:

---

The fact you are making this point in light of your other comments is simply amazing.

---

Why?

The largest reason the deficit exists is affluence (or lack thereof).

These poor countries can never make up the trade deficit. They're too poor.

These poor countries have cheap labor. We cannot make up that difference. We're too rich.

Whatever slight increase you can get on the margins with 0% tariffs is irrelevant compared to their advantage in labor costs. These jobs are in these shitty countries due almost exclusively to that delta in labor costs.

quote:

---

2. Other countries lower or eliminate their tariffs on US made goods, which will make them more competitive in the foreign markets. This should naturally increase production needs.

---

He's not fighting foreign tariffs; he's fighting against trade imbalances. He targeted the countries with the largest imbalances the highest tariffs. Trade imbalances are a natural function of macro/global economics.

quote:

---

He's not fighting foreign tariffs; he's fighting against trade imbalances. He targeted the countries with the largest imbalances the highest tariffs. Trade imbalances are a natural function of macro/global economics.

---

And you don't see how these are linked in any way?

The real answer is he is fighting both because they are inarguably intertwined. He wants to bring manufacturing back here. Either of the options I outlined in my first post are ways it "can" happen and has been done by most other countries around the world at some point or another to get the outcome Trump is trying to get. I don't know why so many seem to struggle to understand that concept at least.

Will it work? Don't know. It is a risky gamble for sure.

quote:

---

You act like we are exporting similar items as other countries.

---

I'm not at all. I'm acting like we export goods that foreign markets apply tarrifs on. If all this saber rattling gets them to remove or drastically lower those tariffs, our goods we export will be much more competitive on the foreign markets, which should naturally increase their demand and thus needed supply.

quote:

---

Poor countries still couldn't afford most of our products. That's the point.

---

I didn't realize we only exported to poor countries. Odd.

quote:

---

We're not making $3 t-shirts like they are, bubba.

---

Okay? Didn't realize we only exported tshirts. Odd.


ETA: If that is your ultimate point, which is a laughable point to try and be making, it doesn't actually answer the question I asked.

Even poorer countries, we still export to. So, I'll ask again, what happens if our goods get a 25% price reduction on the foreign markets?

quote:

---

There’s 500k open positions currently to fill manufacturing jobs.

There’s 100k ALONE in the nuclear submarine field looking to be filled, and can’t be filled bc we don’t have the manpower or willingness to do so.

---

Not anywhere in KS or MO that I can find. Nobody is building manufacturing out in the rural midwest. Tons of people would love to find a job that pays $35k/yr and benefits.

EDIT to add there is a panasonic battery plant being built in rural eastern KS. That is one company that saw the $ benefit to making over here as opposed to importing.

quote:

---

In the aggregate it may be beneficial to our markets, but it won't bring manufacturing back from poor countries.

---

And what about removing regulations and taxes that make it expensive to make in the USA?

Plenty of things are finding ways to be manufactured in the USA affordably. Look at cars. American assembled cars are not priced at a premium over cars assembled in other countries.

quote:

---

The real answer is he is fighting both because they are inarguably intertwined. He wants to bring manufacturing back here. Either of the options I outlined in my first post are ways it "can" happen and has been done by most other countries around the world at some point or another to get the outcome Trump is trying to get. I don't know why so many seem to struggle to understand that concept at least.

---

I think you're having a tough time getting through because most folks who have even a modicum of understanding of how this works have already wholly dismissed any possibility of all this manufacturing coming back to the US. And even if it did, most don't believe it'll lead to a net gain as we'll have nowhere to export goods to and therefore shrinking the economy.

On it's very elemental face, you're 100% right, Trump's stated goal is to leverage tariffs in order to eliminate trade imbalances (which he calls "cheating") around the globe.

quote:

---

Will it work?

---

No. He is showing a complete ignorance to what has driven the American economy engine for the last 80+ years. Targeted tariffs are one thing (like the Chinese tariffs from his first term). This? This is fricking madness.

quote:

---

Plenty of things are finding ways to be manufactured in the USA affordably. Look at cars. American assembled cars are not priced at a premium over cars assembled in other countries.

---

Cars are assembled in the USA, parts are primarily manufactured overseas. Tons of automation.

Chinese car companies are effectively banned from entering the US markets. That are magnitudes cheaper than American car companies. BYD will be largest auto manufacturer in the world within a few years

quote:

---

I think you're having a tough time getting through because most folks who have even a modicum of understanding of how this works have already wholly dismissed any possibility of all this manufacturing coming back to the US.

---

This is rich considering the responses in this thread so far.

quote:

---

we'll have nowhere to export goods to

---

??

quote:

---

No. He is showing a complete ignorance to what has driven the American economy engine for the last 80+ years. Targeted tariffs are one thing (like the Chinese tariffs from his first term). This? This is fricking madness.

---

So, in your opinion, why have the tariffs worked (or not worked) for the other countries around the world?