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> The US consumer is the one that will be paying for the tariffs if they ever come. One of the dangers of over-reliance on single source of import, and a serio
by dexen 10y ago
> The US consumer is the one that will be paying for the tariffs if they ever come.
One of the dangers of over-reliance on single source of import, and a serious failure of long-term planning of several recent administrations. Imagine if imports were diversified; split roughly equally among several source countries. Slapping import tariffs on one of them wouldn't move the prices much thanks to competition, but surely would put serious pressure on the one select source country.
Even the mere ability to do just that that would give USA some leverage in any trade negotiations.
As things stand, introduction of small tariffs on imports from China would help manufacturing grow and flourish in competing countries, including inside USA. Also would put some brake to Chinese current policy of financing growth by huge credit.
Let's not forget American manufacturing and services are already carrying nontrivial burden of indirect taxation by the regulation of environmental protection, workplace health&safety, and the likes. This indirect taxation is much lower in China, allowing it to manufacture at very low cost, to the detrimen of local environment, populace health etc. Basically a lot of externalities are unpaid for in China. An import tariff based off of at least a degree of (the missing) environmental protection could be palatable to Dems (including "progressives"), while being long term help to American economy (help move some manufacturing back to the States), temporary increase in prices of goods notwithstanding.
tl;dr: currently China is the sole source of many consumer goods, and tariffs on chinese imports would tax consumers. If America had several alternative sources, tariffs on chinese imports would tax the chinese; with prices remaining low thanks to competing countries.
- pwinnski 10y agoHow does the US make other countries compete with China? That is, how do we end up with several source countries split roughly equally, rather than the situation we have now? To consider the opposite, how have ended up so reliant on China, given that there are many other countries that would love to split the business?
- HillaryBriss 10y agoright. that's just it. the center of mass of electronics manufacturing, and, yes, design too, is within China. even Japanese and Taiwanese electronics companies are having products created and manufactured in China. so, now, how does any other country really have the ability to do that work?