That tariffs thing is pretty strange. Especially 100% one.
We have custom tariffs of around 20% on things that also produced locally. Local customers just paying 20% more for both, imported and local goods. Local producers wouldn't put the price significantly lower than import ones. So basically it is a way to gift additional 20% of profits to local manufacturers. Good for local manufacturers, bad for local customers and absolutely indifferent for foreing exporters. They wouldn't feel anything at all.
The intention is clear - to support local manufacturers, but if you import 100% of some goods, then it is just government stealing money from people under guise of import replacement.
Tariffs have sense if you already have local manufacturing comparable with import in quantity and quality. Then it could have sense. If you don't have local manufacturing, then tariffs will not force anybody to create local manufacturing. Just everything connected in any way with tariffed goods will become more expensive and that's all. Just inflation and nothing more.
Been there, saw that. Tariffs on, say, imported cars just make decent 2000 Chevy Tahoe on the secondary market cost 1M RUB ($11k). That is result, not better and cheaper cars manufactured in Russia.
Exactly same will happen with US.
There are many different ways that really works. F.e. force all government employees use only US made smartphones with 100% localisation. With severe fines or persecution for using China made iPhones and other. If you are a government employee and can't buy 100% US smartphone, then you have to use old US manufactured landline vintage stuff. Suddenly, many limits, prohibitions and regulations that prevent US businesses from reviving local manufacturing of consumer electronics will disappear instantly.
That's the drawback of continiously changing politicians. Such strategy is good in a short term, but will fail in a long term. When a politician could enrich himself knowing he will never be hold accountable and all shit he did will be left to the next similar self-enriching politician, then they will always choose such short-term shit.
So, politicians have to be hold accountable for any consequences of their decisions without any statute of limitation, even if they quit politics long ago.
That tariffs thing is pretty strange. Especially 100% one.
We have custom tariffs of around 20% on things that also produced locally. Local customers just paying 20% more for both, imported and local goods. Local producers wouldn't put the price significantly lower than import ones. So basically it is a way to gift additional 20% of profits to local manufacturers. Good for local manufacturers, bad for local customers and absolutely indifferent for foreing exporters. They wouldn't feel anything at all.
The intention is clear - to support local manufacturers, but if you import 100% of some goods, then it is just government stealing money from people under guise of import replacement.
Tariffs have sense if you already have local manufacturing comparable with import in quantity and quality. Then it could have sense. If you don't have local manufacturing, then tariffs will not force anybody to create local manufacturing. Just everything connected in any way with tariffed goods will become more expensive and that's all. Just inflation and nothing more.
Been there, saw that. Tariffs on, say, imported cars just make decent 2000 Chevy Tahoe on the secondary market cost 1M RUB ($11k). That is result, not better and cheaper cars manufactured in Russia.
Exactly same will happen with US.
There are many different ways that really works. F.e. force all government employees use only US made smartphones with 100% localisation. With severe fines or persecution for using China made iPhones and other. If you are a government employee and can't buy 100% US smartphone, then you have to use old US manufactured landline vintage stuff. Suddenly, many limits, prohibitions and regulations that prevent US businesses from reviving local manufacturing of consumer electronics will disappear instantly.
Politicians are mostly looking to enrich themselves. That is their agenda but they have to make it sound like what benefits them benefits us.
I’m guessing this move is being made since so many people stopped paying taxes.
That's the drawback of continiously changing politicians. Such strategy is good in a short term, but will fail in a long term. When a politician could enrich himself knowing he will never be hold accountable and all shit he did will be left to the next similar self-enriching politician, then they will always choose such short-term shit.
So, politicians have to be hold accountable for any consequences of their decisions without any statute of limitation, even if they quit politics long ago.