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by ggggtez
2013 days ago
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> It's hard to argue that tariffs on goods from China don't make it less attractive to buy goods from China. Disagree. I think this is small minded. So you add a tariff on chinese goods. If they are not the cheapest, then you buy from elsewhere... which still isn't the USA. And then China does the same thing: retaliating with tariffs, and then buying goods from elsewhere, which isn't the USA either. So in this game, tariffs probably hurt businesses in both countries. And, anecdotally: I still buy products from china. More today than 4 years ago. The products for sale on Amazon are often just chinese imports that have been marked up or re-branded. I think it's the exception, rather than the rule, that tariffs did anything positive for someone. |
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But that's still good. It provides for supply chain diversity even if it isn't in the US. Now you can buy from China and Mexico instead of only China.
Then you get a functional supply chain operating in Mexico, which has geographical proximity to the US and has greater overlap in language and culture, and you're one step closer to manufacturing in Arizona and Texas.
> And then China does the same thing: retaliating with tariffs, and then buying goods from elsewhere, which isn't the USA either.
But the US has a 3:1 trade imbalance with China, so we can use a third of the money to cancel out their tariffs on our stuff. Or threaten to raise ours 33% if they don't stop.
The US has leverage here, but only if they use it.
> And, anecdotally: I still buy products from china.
Manufacturing left the US over the course of 50 years. It isn't going to all come back in less than 5 years. We're talking about long-term here.