US President Donald Trump told world business leaders on Thursday to manufacture in the United States or face tariffs, in his first major speech to global leaders since returning to the White House this week. … “Come make your product in America and we will give you among the lowest taxes of any nation on earth,” Trump said today, speaking remotely to the World Economic Forum (WEF) in Davos, Switzerland.
“But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff,” he added.
lol he still has no idea what a tarriff is
Rest of the world: K 👍
Trump is tired of the US getting ripped off… everyone, and I mean EVERYONE uses the US for money…yet, most of ya’ll would rather see your own country burn than support his “America first” motto…
US companies are the ones ripping off the US.
Tarrifs aren’t going to stop that.
So, just out of curiosity, what do you propose Trump does to stop other countries, and their own companies, from ripping us off?
I don’t trust you to argue in good faith. So for those that would.
If you’re actually concerned about US production you’d lobby for subsidized labor to produce goods here. You’d lobby for stronger unions. If your lens is capitalism you need to outcompete your competition. And the current metric for that is labor costs and worker retention.
Look up FoxConn. See how we’ve outsourced suppressed wages and the model of the company store to China.
So he really has no idea how tariffs work
Yup
Make your products in the USA or force my constituents to pay inflated prices for everything.
… wait
Either he’s an idiot or he thinks everyone listening to him are idiots and I can’t decide what’s worse.
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Trump’s degree is in economics.
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A lot of people who support Trump are worried about having low-skill jobs in areas that the US is not competitive in that pay well in the US, which is hard if they have to compete with the rest of the world.
You may come to your own conclusions.
Hey, there is another option. Corporations could illegally decide to absorb the cost of the labour and tank their share prices.
I’m not quite sure which option would implode the economy faster, but it would be a neat experiment.
Which in turn stimulates local production, which in turn leads to economic growth…
Seriously people, Protectionism is a tried and tested method. In the right circumstances it is a powerful tool. The question is, whether these circumstances apply in the current US, but look at all industrialized nations. They used protectionism to grow their industries and now they oppose other countries protectionism to keep them small.
from your own source
There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth.
A 2016 study found that “trade typically favors the poor”, as they spend a greater share of their earnings on goods, as free trade reduces the costs of goods
So to reduce costs of goods we will make cheap items from China cost more so USA made can compete at a higher price. why doesn’t the math work here? how does this result in a better economy?
It’s unlikely most manufacturers will make that investment, since they’ll have to deal with a significant upfront cost, increased running costs and likely counter-tarriffs, all for an ordeal that may well be completely undone in 2 to 4 years. In the meantime US inflation will grow again.
Protectionism is not the main tool that helped countries industrialize, the creation of global trade and particularly deficit spending are to be credited for that. Protectionism is, particularly in the modern age, next to useless.
The people selling the goods never pay the tariff
They will sell less or none if they have to compete with products made in USA sold without the tariff. That’s the idea.
But manufacturing in USA will also increase prices, so yeah, Americans will pay more.
Except we don’t manufacture alternatives to the goods we’re doubling the price of. And there’s no possible way for those massive supply chains to grow anytime soon domestically.
They’re not going to sell at a loss so they will tack the tarrifs onto the price.
This is intro to economics shit. Not something our leaders should be allowed to try gor funsies.
