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Often times it's raw ability to produce the product. We cannot suddenly produce the iPhone in the US. Other times the products produced are just too expensive
by bjo590 6y ago
Often times it's raw ability to produce the product. We cannot suddenly produce the iPhone in the US. Other times the products produced are just too expensive. Go to your local Honda Powersports dealership and price a motorcycle then go to your local Harley-Davidson dealership and price a similar motorcycle. Even a made in Japan motorcycle, with Japan's most premium motorcycle brand, will be much cheaper than the made in America variety. Made in China is significantly cheaper compared to made in Japan. Finally it's also the raw quantity of products we important from China. $539.5B worth of goods imported in 2018. Producing this much would put a strain on our infrastructure, on our labor force, and on our ability to manage cultural shifts.
https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china https://ustr.gov/countries-regions/china-mongolia-taiwan/peo...
- learc83 6y agoSay we want to manufacturer some item, say cellphones, in the US. Start out with a small tariff on imported phones of 5%, then announce a schedule of slowly raising tariffs until phones manufactured in the US are cheaper than imported phones. Add a definition of manufactured in the US that includes something about the percentage of parts that must be manufactured here to prevent companies form only assembling them here. For phones if there was a profit motive, I think it would take somewhere around 5 years. Repeat for any item for which we want to ensure a domestic manufacturing base.
- arcticfox 6y agoOr what about just adopting the Chinese playbook? If you want to sell phones in the US, mandate a certain amount of key manufacturing transfer to allow it.