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Sure, they work via changing domestic behavior. But the purpose of that change is what's important. They can be used to gently (as compared to sanctions) shift
by fc417fc802 9mo ago
Sure, they work via changing domestic behavior. But the purpose of that change is what's important. They can be used to gently (as compared to sanctions) shift demand away from a particular country, or alternatively to apply pressure to a sector to bring it on shore.
- ivell 9mo ago> They can be used to gently (as compared to sanctions) shift demand away from a particular country That works when those countries are selectively tariffed while others are let off. Blindly applying tariffs to whatever satisfies the mood is not the way. > or alternatively to apply pressure to a sector to bring it on shore. For this to work, the cost of onshore production must be lower than the tariffed price. The inputs must be made cheaper and not tariffed. Again the US administration is not doing any of these strategically.
- fc417fc802 9mo agoAgreed. I wasn't meaning to imply anything one way or the other about the current US tariff regime. > The inputs must be made cheaper and not tariffed. Not necessarily. It's presumably not as efficient, but you'd still expect the entire chain to head in the desired direction eventually.
- vjvjvjvjghv 9mo ago"Sure, they work via changing domestic behavior. But the purpose of that change is what's important. They can be used to gently (as compared to sanctions) shift demand away from a particular country, or alternatively to apply pressure to a sector to bring it on shore" I have talked to some purchasing people at my company and it seems it's going exactly the other way. The company is moving as much production as possible away from the US to serve the international market without paying for tariffs.
- brodouevencode 9mo ago> But the purpose of that change is what's important. Good point.