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I don’t disagree with most of your analysis. Especially your point about automation. Now imagine a world where the US can make things again at a cost competiti
by IanDrake 8y ago
I don’t disagree with most of your analysis.
Especially your point about automation. Now imagine a world where the US can make things again at a cost competitive rate due to automation. Ok, now look at how those goods would be taxed overseas...
We still would have an export problem due to other country’s protectionist tariffs.
The point of the trade negotiations is to get better terms for US exports. This is critical as we come to a turning point in manufacturing.
- zrobotics 8y agoThe trouble, as bunnie points out in the article, is that the tariffs apply to things like components, not finished assemblies. So why would I locate a SMD assembly line in the US if my raw materials are higher, when I can also assemble the product overseas and avoid these tariffs?
- IanDrake 8y agoAs I stated elsewhere, consider this as a very dynamic moment in time. Things are changing quickly. I also agree with your analysis of the current situation, I just don’t believe the current situation will be as it is for long.