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Comment on Trump Threatens 104% Tariffs on China as the Mad King Plays Chicken With the Global Economy

Is this a cut off your nose kind of thing again?

The way I see it: US consumer wants Chinese thing, pays China. With tariffs US government goes: “Hey, we don’t do that over here, pay me” - US customer also pays US government.

US customer ends up paying more for the same thing.

Now to the tricky part:

If economic theory works and thing costs what it’s worth, this means tariffed consumer is overpaying and leaving margin for others to fill. A domestic producer could then make a profit even when not as efficient as the Chinese, cool.

But, a lot of things China does aren’t currently made in the US, factories have to be built, some things won’t be viable at higher prices (maybe not many enough would pay $99 for a phone cover), and some things will never be able to be produced cheaper (no child labor, expensive adult labor).

So it would take quite some effort to first figure out if it’s viable to produce in the US and then to build the production in the US. It also takes quite a lot of time, years probably. Will the tariffs stay that long? If unsure, why risk wasting the effort. If sure, how will the years of punishing prices affect consumers?

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Litebit@lemmy.world ⁨1⁩ ⁨week⁩ ago
that is why I think this tariff thing is not an attack on other countries but just a way for trump to collect more tax from americans, since they have no choice but to buy from china.

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finitebanjo@lemmy.world ⁨1⁩ ⁨week⁩ ago
You talk a lot about Economic Theory considering you completely ignored one crucial detail: consumers won’t buy it if the price gets high enough. This could effectively become an Embargo, and it should because Fuck Chinam

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- Brainsploosh@lemmy.world ⁨1⁩ ⁨week⁩ ago
  
  You talk a lot about Economic Theory considering you completely ignored one crucial detail: consumers won’t buy it if the price gets high enough
  
  not many enough would pay $99 for a phone cover), and some things will never be able to be produced cheaper (no child labor, expensive adult labor).
  
  I seem to have mentioned this.
  
  This could effectively become an Embargo, and it should because Fuck Chinam
  
  If that is the case it’s kind of an own goal; China is still free to trade with anyone, including US consumers that pay more. It’s just the US consumers gwtting worse access to thw products they want. Closer to a self embargo, no?
  
  It’s like a much more expensive “Buy American” campaign, only it also makes the US utterly untrustworthy in any future trade deals or investments.
  
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  - finitebanjo@lemmy.world ⁨1⁩ ⁨week⁩ ago
    If the USA embargoes have no effect as you claim then certainly a lot of hooting and hollering over the last century about the exact topic seems pointless in hindsight.
    
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- Litebit@lemmy.world ⁨1⁩ ⁨week⁩ ago
  Consumer will still buy it if it is essential/critical. If it gets high enough they will travel out of chine to buy it. Example people travel overseas for medical treatment/surgery. Because even after including ticket price and hotel stay it is still cheaper overseas than in US.
  
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