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On its own yeah but tariffs subsidies and other policy tools can make it so you are profitable. If apple makes iphones for $99 in China you can specifically imp
by _8j50 4y ago
On its own yeah but tariffs subsidies and other policy tools can make it so you are profitable. If apple makes iphones for $99 in China you can specifically implement tariffs on iphones at 500% so it is equally costly if making it in the US costs 499.
- oneoff786 4y agoSo now iPhones are 80% cheaper in every other country in the world? Seems unlikely to work. You’ve also introduced a massive tax for a single product for a single company which is prettt bullshit
- _8j50 4y agoNo, that means apple which is a US company tucks its tail between its legs and starts making iPhones in the US for US/europe customers and wherever else it wants if it wants to compete outside of the US. Apple specifically makes most of its iphone profits from the US and it is a mainline product for a trillion dollar company that is taking money out of the US consumer into Chinese economy so it isn't bullshit at all.
- oneoff786 4y agoA tariff like this has never happened before and would be heavily contested. Not especially realistic. And also wouldn’t prevent apple from making iPhones in China for every other market.
- _8j50 4y agoYou are right but at least a large part of their revenue will come from US made iphones which means money in the US economy instead of China, similar tariffs for others who innovate in the US but manufacture elsewhere can be implemented as well since international commerce can be regulates by the fed gov. It would also set precedent for future outsourcing attempts, reduce the likelihood of wars and supply chain chaos.