4 ms·
This is way too harsh of a tariff, by doing this Trump isn't sending clear signals to manufacturers. Trump's "schizophrenic" decisions to announce high tariffs
by ikeashark 2y ago
This is way too harsh of a tariff, by doing this Trump isn't sending clear signals to manufacturers.
Trump's "schizophrenic" decisions to announce high tariffs only to whiplash manufacturers by announcing pauses or straight dropping tariffs makes it hard to justify setting up a plant in the US.
If given the choice of committing to building a plant to reduce costs because of the tariffs, or just cutting costs / employees, most will do that latter.
One cannot justify building a plant if halfway through building it, tariffs are dropped ( due to an admin change or something else). Because then you have a factory that costs you more money than just importing from China.
- tim333 2y agoI'm not sure there's an economic rational for this one so much as Trump hitting back at China for raising reciprocal tariffs to his tariffs. It doesn't seem a great situation really. Smoot–Hawley 2.
- Tadpole9181 1y agoI mean... You also can't justify building a plant when your raw materials are double the price. May as well build in Canada or the EU and export at a 10% tariff.