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by iancmceachern
211 days ago
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This is one of the great misconceptions. There are often no "native" alternatives. Even the machines that make the chips are nearly all made in one country and then shipped around the world. The amazing, modern nature of our modern world is built on the collective effort and knowledge of humankind globally. Globally. |
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It's also done to protect local industries, hence the term "protectionism". For example, Canada's large tariffs on American milk are there to protect the local Canadian milk producers.
AFAIK, Trump's tariffs are meant to serve the following purposes:
1. so critical supplies, like chips, will be produced domestically
2. to raise money for the treasury
3. to convince countries that have high tariffs to lower them in exchange for the US to reciprocate in lowering ours
4. to incentivize foreign manufacturers to invest in factories in the US
5. to use them as a negotiating tool for other terms favorable to US interests
These are not crazy things. We'll see how things play out.