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by supertrope 324 days ago
An N95 mask made in China costs $0.30. One made in the USA costs $1.00. A 25% tariff was enacted by executive fiat. The made in China mask is still cheaper than the USA made one. Few hospitals buy American. PPE manufacturers in Malaysia win.
2 comments

It's clear that a 25% tariff isn't enough in this example.

It's very basic though. Americans have to follow laws, including regulations from EPA, OSHA, building codes, routine inspections (e.g. health inspections), and taxes and permits.

External companies don't face as many of these hurdles. Mexico doesn't have to report to the EPA or OSHA, so if implementing better work environments or cleaner air is important, tariffs act as a tax to instead manufacture in America and, in effect, follow those regulations.

Yes off-shore manufacturers have lower labor and environmental standards. Wealthy countries indirectly benefit from exploitation.

You'd have to somehow convince or force hospitals to pay more for disposable medical supplies. They're not going to pick the USA made mask when they can get a Malaysian one. Domestic manufacturers are only going to build new plants and hire with a long term policy shift.

Americans would be pissed once everything triples in price.

and China is therefore punished in the context of treating US imports to China in an unfair way; this was one of the goals, so you're saying "policy win"?
Very telling that you think "punishing" China is a win for us. We are mostly just fucking ourselves, proving that we can't be trusted as a global trading partner, and driving other countries straight into China's arms.
> China is therefore punished

If we only tariffed China, yes. They would be. Because while their 37.5ยข mask remains 63% cheaper than the American one, it might be 20% more expensive than one made in Mexico or India or Vietnam. But we didn't do that. We raised the prices for everyone. So those orders are, more likely than not, still going to go to China. There will just be some middle men taking a cut along the way.