Please can someone sensible explain to me why the American tariffs are a good idea?
How does this make the already wealthiest economy in the world “great again”? Every export has instantly become more expensive, so less will be sold, and every import has instantly become more expensive for Americans to buy. No country can exist on its own surely? Do we not all rely on each other to some extent?
It’s certainly an interesting and emotive debate. I’m a simple soul, and it strikes me that the reason countries import goods is largely because of quality and cost. Germany/Japan make great cars, at an affordable price. I’d imagine labour rates and efficiency are a big factor here. Fender make nice guitars, but USA built ones are far more expensive and not significantly better than Korean built Fenders, so people of course buy the cheaper ones. So, if the factories making American products aren’t selling nearly as many due to taxes on top of labour rate costs, what’s going to happen? Additionally, with the reciprocal tariffs imposed on foreign goods, that’ll make the things that American people have enjoyed for generations far more expensive won’t it? Assuming that the figures on trade are correct, (and who really knows), then how has an already wealthy country prospered so much? If the USA were to be a poor country I could understand this idea of “making things fair”, but we’re talking about the wealthiest economy in the world here aren’t we? Or is that wrong? I don’t know.
Perhaps my logic is flawed, and I don’t profess to being an expert economist, but I really can’t see how anyone is going to be better off here…
@BrandNewMan Well, I really don’t know about the ATM perspective. Nor do I know about the accuracy of trade deficits etc. I’m merely asking if anyone is genuinely better off over this, because it seems to me that it’ll lead to redundancies and more expensive things in the U.S. more than anything. It wasn’t meant to be a nationalistic question because it’ll be the people paying the price in the end, won’t it?
it strikes me that the reason countries import goods is largely because of quality and cost
And to meet demand.
Back in the early 80s, when the US auto industry was tanking, instead of making better cars, that don't break down, for a price that doesn't break the bank, thew US auto industry, decided to lobby the government to tariff imported cars.
That policy did not save the US auto industry. It instead made Detroit dig in and continue to slip in terms of reliability and innovation.
It took decades and a near economic collapse of the US economy, for the United Auto Workers union to quit bullying and blackmailing, and start to get reasonable, allowing the US car industry to start innovating (and we're not there yet).
I would love to buy an American car with the same feature set and price as a South Korean car. In reality, the South Korean car, is going to be less expensive and has far more features than the US car. Keep in mind that South Korean auto workers, make 25% or so, more than their US counterparts.
Tariffs as an economic policy, is not necessarily a good way to go about growing the economy long term.
Let's say you have a kid, making $20 per hour, because they did not learn a useful skill, so you pay them to now the lawn. But to "protect" them, you create a policy, where a kid from another neighborhood has to pay $5 per hour, to enter your yard and mow your lawn for $10 per hour.
Wouldn't be better to force your kid to learn a skill that can pay them $40 per hour? Wouldn't you be more comfortable going to your grave knowing this is a better solution long term?
The US has a large trade imbalance with certain countries, and some think tariffs are the way to fix that.
Trump took a piece of paper, created a list of countries and for each country, he applied a simple formula:
country deficit with US divided by two and apply a percentage to it
And that's how much he figures they owe the US in tariffs.
Trump claims it's justified because this particular country is charging tariffs on US goods.
Which is a total lie.
Take South Korea for instance. 95 percent of goods from the United States are completely exempt from South Korean import tariffs, because we have a trade agreement with South Korea.
A percentage of the population chooses to believe the lie. And Trump presents himself as a crusader righting a wrong. Which creates a circle of ignorance.
Look at the responses here in support of tariffs. They all claim the same thing: they impose tariffs on us, we impose tariffs on them.
Mind you that Trump himself, sent all manufacturing related to the products he pushed to, you guessed it: China.
They also believe, driven by another Trump fat ass lie, that tariffs are paid by the exporter not the importers, because they don't know it's just another ft tax on the American people.
If Americans were playing football, and the EU team, (as an example), began every single game with an automatic 25 point handicap,in addition to refusing to allow the Americans to sell their hot dogs and hamburgers at the concession stands during the game, AND a biased referee, that would be equivalent to the 25% tariffs that the EU is now charging for American motor vehicles and many other items if they were to be sold in the EU.
WE were charging the EU and Japan 2% for the cars they imported to the States. THEY were charging us 25%. I think you can see the problem.
IF...and hopefully that is very soon...the people overseas who have been ripping us off for many, many years stop their hysterical screaming and reduce their tariffs on the United States, WE will quickly match those same tariffs. Tariffs will NOW be RECIPROCAL. If the EU charges us 25%, we will charge them 25%. If they charge us 2%, we will charge them 2%.
AND if any company now located overseas wants to build a factory inside the United States they will pay 0% tariffs. IN ADDITION, Trump will waive all their building costs on their first year of taxes!!!
It's extremely short sighted to think that this won't QUICKLY self adjust.
In 9 months, maximum, the people overseas who haven't been able to comprehend this simple math will go out of business.
Because the United States is the LARGEST and wealthiest market in the world.
The American people VOTED for this. We WANT this. We want the theft and disrespect to stop. We don't mind paying a little bit more for about 9 months till this whole thing levels off.
tariffs are more nuanced than people make them out to be...
Nor is it the first time we've used them to boost economy; FDR's Reciprocal Tariff Act in 1934 played a major role in getting us out of the great depression.
Treat others the way you want to be treated. Fair is fair. We are finally doing the same thing every other nation has been doing for decades . I don’t see the problem in theory.
I don't know if I would go so far as calling them a great idea, but on the other hand a trade deficit approaching a trillion a year isn't a great idea either.
What's your solution?
External balance on goods and services (formerly resource balance) equals exports of goods and services minus imports of goods and services (previously nonfactor services). Data are in current U.S. dollars. U.S. trade balance for 2022 was $-971.12B, a 13.15% increase from 2021. U.S. trade balance for 2021 was $-858.24B, a 37.01% increase from 2020. U.S. trade balance for 2020 was $-626.39B, a 8.28% increase from 2019. U.S. trade balance for 2019 was $-578.50B, a 2.46% decline from 2018.
They are a good idea for America. With the previous inept, corrupt administration, American interests were the last thing they protected, as they spent wildly and stole from the treasury to the point that the country is facing bankruptcy. It had to stop, and the unfair trade margins from friend and foe alike can no longer be tolerated. Now, our trade partners can either remove their hands from our pockets and negotiate new, fair trade deals, or pay more. Tariffs are effective and were employed in the first Trump administration to foster a thriving economy.
@uikakarotuevegeta In your world, that may be the case, but in reality, it does not work that way. The printing of money, spending, and the lack of any economic plan are why we have crippling inflation and people can not afford to by groceries. It has to be fixed, and our national debt eliminated.
@TexChik you know inflation is also a social construct that only really has a basis for non-fiat currencies right? If tech and automation can significantly reduce costs aka act as deflation, then that's the way to go...even if it does make many unemployed
I never was a socialist; you're just strawmanning and engaging in ad hominem. And of course you have to block me because you lost the argument; typical pseudo intellectual coward. Please go back to Reddit or whatever echo chamber you came from, if you can't handle differing viewpoints.
It is not about cost of goods to citizens of America, more or less, they will remain same for citizens. In most cases it will earn revenue to govt. of U.S. and in some scenarios it will give better opportunities to countries having low tariffs.
@Northwest They can't increase beyond a certain limit, because they will have to compete with low tariff countries. It will definitely give opportunities to countries with low tariffs. If the U.S. govt. doesn't give tax reliefs to it's citizens, citizens have to bear the tariffs by themselves.
@Pfuzylogic actually he expanded upon it with USMCA in his first term, so you should be mad your emperor lied to you
and also it was greedy corporations outsourcing jobs to raise profits, along with the middle class refusing to pay more for consumer goods that led to the mess we're in...unless you're fine with Americans working for 50¢ an hour and/or mass automation replacing humans
@uikakarotuevegeta NAFTA the agreement that we are leaving was signed by Bush 41 to decimate the middle class. Now they have destroyed the wealth of the population inherited by WW2 vets; they want to stick it again the those that have no wealth by a regressive taxing through the tariffs.
@jshm2 That’s an interesting viewpoint. I’m not American, so I haven’t got a political bias, but tell me, what’s the average standard of living like there? I genuinely don’t know…
https://www.foxbusiness.com/economy/china-retaliates-34-tariffs-us-imports "We have been getting the short end of the stick for years and it's important that Americans understand this. These are reciprocal tariffs. We have been tariffed. Our goods are tariffed. We are always at an unfair disadvantage with these countries so it's going to be a little bumpy, they are going to cry, they are going to yell," he continued. "I spoke to the president personally yesterday, he was telling me that already, countries are coming to him saying ‘lets work this out, we can make a fair deal, we can do better.' We will. Everybody just hold on a little bit, be a little bit strong, Wall Street will come back. But this is also about Main Street, this is about making things in America."
As you can see, there are tariffs on our goods going out. And the Trump tariffs aren't nearly as high.
When the countries who are ripping us off decide to drop their tariffs, PRESIDENT TRUMP will drop ours.
@NewWorldTorontoYou realize those arn't the actual Tariffs he is presenting...it is the trade exports to US divided by US imports.
You definitely have an inferior blue state reading comprehension.
The phrase RECIPROCAL TARIFFS is on that sign. One column shows the tariffs the other countries are charging us. The other column shows the Trump Tariffs he will be charging back, and most of them are HALF.