4 ms·
Tariffs to produce market effects (like onshoring) only work if those tariffs are observed to be durable (in four years all these tariffs will evaporate) and ar
by munk-a 8mo ago
Tariffs to produce market effects (like onshoring) only work if those tariffs are observed to be durable (in four years all these tariffs will evaporate) and are strengthened by being paired with other encouragement (i.e. industry development subsidies).
These tariffs are arbitrary and capricious and no business would rationally respond to them with any kind of long term investment. People just want to weather the storm of the mad king and international partners are developing alternative relationships to seek more stability.
- thatfrenchguy 8mo agoYou still have to be way more strategic so the inputs of your new factories don’t get tariffed as well, otherwise your higher labor costs will kill any desire to actually do onshoring.
- bigbadfeline 8mo ago> Tariffs to produce market effects (like onshoring) only work if those tariffs are observed to be durable Tariffs do produce immediate market effects - inflation and shortages, which we do observe. In order to produce positive market effects tariffs must be gradual, differentiated, measured, negotiated and communicated well in advance.