Spindel said:
irstupid said:
No, that is not what his hope is and what this would do.
Americans will still make their product with the same labor costs and so on. Lets use a BS example.
America makes a TV. It cost $500 to make in the US when accounting for all the materials, labor, ect.
China makes a TV. It costs $200 to make in China when accounting for all the materials, labor, ect.
Clearly China can sell that TV for way less than an American company and still make money. BUT with a large tariff that difference is diminished. American can now compete price wise without having to cut costs.
Without the tariff, to compete, America would have to find ways to cut costs. That could mean using cheaper materials, OR pay their employees less.
So the Tariff would do the opposite if anything in regards to labor for American workers.
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Except that china manufactures all the parts in the TV. The TV made in USA has to import parts from china.
...but meh who cares I don’t live in USA anyway.
Mods please keep politics out of this forum!
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The point is that if it costs too much to manufacture the parts in China, then US companies will move their factories back into the US.
So the products will once again be made on US soil, thus creating more jobs. Even though it costs more to make in the US, the products are still competitive because of the large trade tax on Chinese goods.
I'm not saying us consumers win, just pointing out the philosophy behind it.
