On paper, tariffs against China are good. But often it hits the customer stateside. Sure we hire a US based craft labor team to weld that widget for us, but the cost of that tariff on the metal inevitably gets baked into material costs on our invoice.
Or we’ve pushed off major projects quarter by quarter in the name of short term gains until we get a catastrophic failure and the only place to buy that OEM doohickey is at a plant in China. And the SME that retired last year’s headcount hasn’t been backfilled.
I’m typing this out on an iPhone made in China that would cost 10x to build here than over there. I don’t know the answer, but there has to be a better way forward for American business.
Tariffs are never a good idea, no matter which country imposes them, it just drives up the price for those back home when they purchase the product. This idea by Trump that he is going to tariff everyone, and those countries are not going to do the same to our goods is beyond stupid.
There are two ways to fix this problem, 1st would be to use the tax code to make it practical for US companies to make the product here in the US as opposed to overseas, by charging the company at a higher tax rate to bring the product back into the country to sell.
The 2nd which will never happen is that US companies and more important the stockholders of those companies will have to learn to accept less in profits each year. Move away from the Reagan trickle down economy model that is based on rewarding the investment class over the worker. But it will never happen.