2 ms·

That doesn't make sense to me. If you can make a profit with offshore manufacturing on anything under 20%, why would you reshore until the rate hit unprofitable

• Nevermark 2y ago
  If you suddenly force everyone to buy local, by making importing unprofitable, then local prices will rise to match the import plus tariff prices. You have vastly increased local demand without increasing local supply. Businesses are forward looking. If they know they are going to become unprofitable importing over the next 2-3 years they will be scrambling to work with local suppliers. Or become local suppliers themselves. You don't need to suddenly bankrupt, or force many companies to exit markets, to make the transition if tariffs changes match the practical time it takes to make the change. Businesses are not magical. Local supply doesn't magically appear, it actually takes time. This is especially true for tariffs over a wide enough array of products and materials to impact the whole economy. If tariffs are on a schedule, you can even raise the final tariff rates higher. Achieving even deeper changes, without the waste of suddenly incentivizing the impossible.