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Well, at least domestically you don’t have to compete with someone who doesn’t have to pay that because their product is probably tariffed directly. Internatio
by pfannkuchen 11mo ago
Well, at least domestically you don’t have to compete with someone who doesn’t have to pay that because their product is probably tariffed directly.
Internationally, yes if you manufacture the international product in the home country, but AFAIK in auto at least there are usually satellite factories and have been for some time, and those wouldn’t be subject to home country tariffs would they?
- energy123 11mo agoPrecisely, you need to set up plants overseas to dodge the input tariffs instead of onshoring manufacturing for export. That causes reductions in manufacturing investment compared to the alternative.
- pfannkuchen 11mo agoCompared to the alternative where the domestic plants don’t exist at all because they are competing domestically with low cost foreign products?
- energy123 11mo agoIn that hypothetical they can't compete because of labour protectionism and immigration restrictions, not because there's some intrinsic reason it's too expensive to manufacture in one country versus another.