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> the price of Chinese lithium is low enough that it would be essentially impossible to compete with them... In an export model, yes. However, given their neg
by engineer_22 2y ago
> the price of Chinese lithium is low enough that it would be essentially impossible to compete with them...
In an export model, yes. However, given their negative externalities (including geo-political factors), importing countries may place tariffs on Chinese lithium in order to make use of other sources.
If the total embodied value of lithium in any particular product is small compared to the overall value of the product, the tariff might not represent a significant drag on the indigenous industry.
- Dalewyn 2y agoKeyword there is may. Putting aside whether the sentiment is justified, it is currently extremely unpopular to impose Chinese tariffs. It's also worth noting that Chinese prices are so low that certain tariffs can reach the stratosphere (eg: American 100% tariff on Chinese EVs), further making them unpopular with the commons.
- trimethylpurine 2y agoCongress plays whack-a-mole with policy while importers shuffle goods or various parts of the manufacturing process to neighboring countries or follow tighter packaging constraints to avoid specific tax rules or earn specific tax incentives. Tariffs are political showmanship. It's not really a viable nor an enforceable option in the modern economy, at least not based on my experience in the industry.
- corimaith 2y agoAnd all that shuffling introduces more costs, creates negative externalities for exports does it not?
- trimethylpurine 2y agoMaybe for certain complex manufacturing processes (microprocessors?), but for most goods, not really. India, Vietnam, etc. Same, same. American labor and real estate (shelf space) are what make up the vast majority of the cost for goods purchased here.