What would stop the US mega corps from just raising their prices 19pct? Still cheaper and free profit.
i honestly don’t understand the question. why should they do that? what’s stopping them now? what’s your point?
Why would large manufacturers move to a US with all its pesky eco rules and labor protections if you can just stay in your current country where you invested in your factories and just have the US consumer eat the price hike?
because you can now produce at home at a competitive price?
Investing in a country due to tarrifs is risky, cause if the tarrifs ever go away you invested in an uncompetitive manufacturing plant.
indeed, longterm stability and predictability is important. there are unpredictable factors in 3rd world countries the west civilization currently exploits as well, so the goal is to be more stable and predictable at home. i am not saying it is easy.
Tarrifs will be met with counter tarrifs causing other sectors to implode. The last round of trump tarrifs on china needed to be spent on farmers in the US almost completely because china tariffed their products and their main customer base in china dissapeared over night.
You are either being silly or intentionally taking weird positions.
the current prices are set by the market. If an artificial influence like a tarrifs overnight makes part of the products a certain percentage more expensive, the market will readjust to this new reality. Since companies love profits, it will adjust upwards to get as close to the increased conpetitors price while keeping your advantage.
“at home” for a lot of companies is not the US. Your reasoning is poor here, companies are driven by profit not feelings.
No it’s not easy indeed, see previous point. And the competitive edge the companies have by staying in cheaper countries helps them be competitive in the rest of the world.
it worked? The Trump tarrifs stayed under biden… cause flip flopping policy is sometimes worse, and removing the tarrifs without china removing theirs will just make things worse. Did your stuff get cheaper? Or is that Bidens fault?
You are either being silly or intentionally taking weird positions.
oh i am? 😂
the current prices are set by the market.
yes. and when your competitor is not bound by the same regulations as you are, you may find that unfair, because he can achieve cheaper prices on the same market.
increased conpetitors price while keeping your advantage.
what? the current competitor’s price is lower than yours and you are trying to level the field. you are approaching the price from the opposite direction than you suggest, so what you are saying makes no sense.
“at home” for a lot of companies is not the US.
and the goal of the tariff is to change that.
companies are driven by profit not feelings.
exactly. that’s why they have no problem exploiting people and environment in 3rd world countries. if you change the rules of the game to make it profitable for them to come back, they will do that.
No it’s not easy indeed
i never said it is easy.
And the competitive edge the companies have by staying in cheaper countries helps them be competitive in the rest of the world.
yes, this is sort of a prisoner’s dilemma and lot of economic problem’s is like that in modern world. i don’t have a solution for that, but it is pretty clear that selfish strategy for everyone is not actually working for anyone right now.
it worked?
it worked, because farmers who got in trouble were compensated according to what you said. i am not american, i don’t know details about trump tariffs and i in no way defend trump or his implementation. i am just saying tariffs are not stupid idea.
the specific implementation is what can make it work or not and you can fuck up there, i am sure.
i honestly don’t understand the question. why should they do that? what’s stopping them now? what’s your point?
because you can now produce at home at a competitive price?
indeed, longterm stability and predictability is important. there are unpredictable factors in 3rd world countries the west civilization currently exploits as well, so the goal is to be more stable and predictable at home. i am not saying it is easy.
so… it worked?
You are either being silly or intentionally taking weird positions.
oh i am? 😂
yes. and when your competitor is not bound by the same regulations as you are, you may find that unfair, because he can achieve cheaper prices on the same market.
what? the current competitor’s price is lower than yours and you are trying to level the field. you are approaching the price from the opposite direction than you suggest, so what you are saying makes no sense.
and the goal of the tariff is to change that.
exactly. that’s why they have no problem exploiting people and environment in 3rd world countries. if you change the rules of the game to make it profitable for them to come back, they will do that.
i never said it is easy.
yes, this is sort of a prisoner’s dilemma and lot of economic problem’s is like that in modern world. i don’t have a solution for that, but it is pretty clear that selfish strategy for everyone is not actually working for anyone right now.
it worked, because farmers who got in trouble were compensated according to what you said. i am not american, i don’t know details about trump tariffs and i in no way defend trump or his implementation. i am just saying tariffs are not stupid idea. the specific implementation is what can make it work or not and you can fuck up there, i am sure.
goal of the tariffs is not make stuff cheaper.
Trump points to tarrifs when asked what he will do to make life more affordable to Americans. For the rest I suggest some more econ classes.
sounds like reasonable idea. when do you start?