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But there is new incentive created here. Now someone can create a small business to serve die-cutting like the parent needs because they have the extra edge ove
by YZF 2y ago
But there is new incentive created here. Now someone can create a small business to serve die-cutting like the parent needs because they have the extra edge over the Chinese competition. These sorts of small shops that did small runs used to be part of the economy before they closed after they couldn't keep up with the low cost coming out of China and they can in theory come back if making stuff in China becomes expensive enough.
Is that an immediate win for the consumer and the economy? Probably not. In the long term it could be reversing the globalization which is maybe a good thing (or at least that's the argument).
- roywiggins 2y agoAnything imposed on the whim of the executive can be taken away just as easily, so building an entire factory based on an assumption about tariffs remaining in place is probably a hard sell.
- YZF 2y agoAs the joke goes only two things are certain in life, death and income taxes. Seriously though- yes. But it moves the needle a little bit on the expected value. If the tariffs survive for a year it'll move the needle more.
- ceejayoz 2y ago> But there is new incentive created here. Now someone can create a small business to serve die-cutting like the parent needs because they have the extra edge over the Chinese competition. You’d need dramatically higher tariffs for there to be any chance of that. Or a complete trade embargo. And either way, it’s gonna mean much more expensive goods for consumers.