THIS IS WHY TARIFFS NEVER WORK. In the long term tariffs actually encourage manufacturing to leave the country charging tariffs, not move manufacturing there. It’s much cheaper to pay the tariffs once, on the final product, than to pay the tariffs on every part that is required moving back and forth across an “imaginary line” (border in Trump-speak).
None of Trump’s tariff bolstering hurts Apple at all. They are a global company and can easily adjust around the asinine policies of America for a few years. Americans will get sick of paying a minimum of 25% more for EVERYTHING, while the rest of the world continues on as if nothing happened. Eventually Americans will see that the rest of the world has all the nice things and they’ve become a self imposed Soviet-era block country that has nothing and has to line up for toilet paper, and they’ll be right pissed. Until then, enjoy your delusion. 👏
tariffs could work if you’re not the US. the problem is the US doesn’t make anything.
for normal countries you could use tariffs to encourage products made inside the country. but for that to haopen:
you need the products to already be manufactured inside the country
you need to have targeted tariffs that apply specifically to those products and not blanket tariffs that would apply to each and every part of product, which would make it infinitely more expensive to manufacture inside the country than outside.
so for example if your country has a decent production of bananas but people for some reason prefer to buy imported bananas way more than homemade ones, you might have some tariffs on bananas to try and reduce waste.
for that to be effective, you can’t also have tariffs on soil, farming equipment and whatnot that might be going into your homemade potato production. otherwise you’d have homemade potatoes more expensive then imported ones.
Tariffs can also be an effective way of balancing buisness advantages. An example: Germany has quite high standards in its farming sector. This applys to what pesticides you are allowed to use, how much fertiliser you can use, what conditions animals have to live in and so on. Everything that you have to do to comply with these rules costs money, so in order to still make a profit you need to charge quite high prices. If you then compare these with the almost non existent standards of, as example Brazil, you quickly realise, that they are capable of producing goods much cheaper (who could have guessed, that its cheaper if you can just imassively increase your land by land grabbing, giving a shit on everything and using the most efficient, but very cruel, ways to feed and hold your livestock). Due to this, beef that gets imported into Germany from Brazil, thanks to Mercosur without any tariffs, will be magnitudes cheaper than locally made. This kills your local farming sector and also does massive damage to Brazil’s citizen and enviroment (its a massive brainfuck how farming works there). If you want to counteract this you could charge tariffs, so that the consumer starts preferring locally made products, because they are cheaper. This also is an incentive for Brazil to better regulate its farming industry.
THIS IS WHY TARIFFS NEVER WORK. In the long term tariffs actually encourage manufacturing to leave the country charging tariffs, not move manufacturing there. It’s much cheaper to pay the tariffs once, on the final product, than to pay the tariffs on every part that is required moving back and forth across an “imaginary line” (border in Trump-speak).
None of Trump’s tariff bolstering hurts Apple at all. They are a global company and can easily adjust around the asinine policies of America for a few years. Americans will get sick of paying a minimum of 25% more for EVERYTHING, while the rest of the world continues on as if nothing happened. Eventually Americans will see that the rest of the world has all the nice things and they’ve become a self imposed Soviet-era block country that has nothing and has to line up for toilet paper, and they’ll be right pissed. Until then, enjoy your delusion. 👏
tariffs could work if you’re not the US. the problem is the US doesn’t make anything.
for normal countries you could use tariffs to encourage products made inside the country. but for that to haopen:
so for example if your country has a decent production of bananas but people for some reason prefer to buy imported bananas way more than homemade ones, you might have some tariffs on bananas to try and reduce waste.
for that to be effective, you can’t also have tariffs on soil, farming equipment and whatnot that might be going into your homemade potato production. otherwise you’d have homemade potatoes more expensive then imported ones.
Tariffs can also be an effective way of balancing buisness advantages. An example: Germany has quite high standards in its farming sector. This applys to what pesticides you are allowed to use, how much fertiliser you can use, what conditions animals have to live in and so on. Everything that you have to do to comply with these rules costs money, so in order to still make a profit you need to charge quite high prices. If you then compare these with the almost non existent standards of, as example Brazil, you quickly realise, that they are capable of producing goods much cheaper (who could have guessed, that its cheaper if you can just imassively increase your land by land grabbing, giving a shit on everything and using the most efficient, but very cruel, ways to feed and hold your livestock). Due to this, beef that gets imported into Germany from Brazil, thanks to Mercosur without any tariffs, will be magnitudes cheaper than locally made. This kills your local farming sector and also does massive damage to Brazil’s citizen and enviroment (its a massive brainfuck how farming works there). If you want to counteract this you could charge tariffs, so that the consumer starts preferring locally made products, because they are cheaper. This also is an incentive for Brazil to better regulate its farming industry.