4 ms·
How does this argument apply to a good like coffee? We drink a lot of coffee, and it makes us more productive, but we produce very little of it. Maybe we could
by apical_dendrite 1y ago
How does this argument apply to a good like coffee? We drink a lot of coffee, and it makes us more productive, but we produce very little of it. Maybe we could increase coffee production in Hawaii, but since we can use the land and the labor for more high-value purposes, it would cost a lot more than importing it from Brazil or Colombia. So when we slap a 50% tariff on Brazil, the average American ends up consuming less of something that they enjoy and find valuable, or paying more to consume the same amount. Maybe some land owners and agricultural workers in Hawaii benefit. Doesn't seem like a worthwhile trade-off.
I think there are some categories of goods where protectionism makes sense for national security reasons, but for most goods, I don't really see the value of propping up less productive domestic production and causing increased prices for consumers. Do we need to make underwear in America? Or toys?
And of course tariffs are not one-sided, so retaliatory tariffs hurt the domestic industries where our exports are competitive, which tend to be high-value.
- DFHippie 1y agoThey also grow coffee in Puerto Rico. Nevertheless, these few small islands have much less area available for coffee growing than Brazil. And coffee is grown in many other countries than Brazil, all of which are under Trump's trade assault. There is no way to substitute US-grown coffee for foreign-grown coffee.