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  • Why US Import Tariffs Won't Work

    From Joseph Pereira@1:124/5016 to All on Thu Oct 2 05:56:08 2025

    Trump wants to use the tariffs to force manufacturers to start making products in the US again.

    That's a pretty hopeless proposition.

    There are several reasons for this.

    The main reason it won't work is that China isn't 30% or 60% cheaper. If US manufacturers want to compete with China in the US, they'll have to impose a 500% to 600% tariff.

    US industrial products are literally 6 times more expensive if you want to make them in the US.

    This is due to the scale of production, which the US can't match. After all, China produces for the world. The US wants to produce for the US.

    Moreover, Americans want a wage that allows them to live in the US. With very expensive American products, US wages will also have to rise.

    And that's not even mentioning the fact that the US has to rebuild its production from scratch. After all, it's practically gone. Are American companies going to invest in something they know they can never compete with globally? Suppose a future administration decides it's not worth it, then you'll have invested billions for nothing. Who seriously wants to take that risk?

    .
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  • From Kurt Weiske@1:218/700 to Joseph Pereira on Thu Oct 2 07:07:57 2025
    Joseph Pereira wrote to All <=-

    Trump wants to use the tariffs to force manufacturers to start making products in the US again.

    That's a pretty hopeless proposition.

    I don't see altruism in tarriffs. It's about power. Look at the soybean
    debacle - we put tarriffs on China, they stop buying soybeans from us.
    Farmers complain, and Trump floats providing relief, ostensibly from
    the tarriffs he's collecting from Americans to solve a problem he
    created. They'll probably thank Trump for saving their businesses and
    buy TRUMP 2028 hats from the Trump store.

    In the meantime, Argentina is becoming China's trading partner in soy
    beans, and we're sending Argentina $20 Billion to prop up their economy?

    Someone, make this make sense.



    There are several reasons for this.

    The main reason it won't work is that China isn't 30% or 60% cheaper.
    If US manufacturers want to compete with China in the US, they'll have
    to impose a 500% to 600% tariff.

    US industrial products are literally 6 times more expensive if you want
    to make them in the US.

    This is due to the scale of production, which the US can't match. After all, China produces for the world. The US wants to produce for the US.

    Moreover, Americans want a wage that allows them to live in the US.
    With very expensive American products, US wages will also have to rise.

    And that's not even mentioning the fact that the US has to rebuild its production from scratch. After all, it's practically gone. Are American companies going to invest in something they know they can never compete with globally? Suppose a future administration decides it's not worth
    it, then you'll have invested billions for nothing. Who seriously wants
    to take that risk?

    .
    --- SBBSecho 3.30-Linux
    * Origin: End Of The Line BBS - endofthelinebbs.com (1:124/5016)

    --- MultiMail/Win v0.52
    * Origin: http://realitycheckbbs.org | tomorrow's retro tech (1:218/700)