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 👍
Get ready for The Great Depression Pt. 2: The Electric Boogaloo
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.
Probably both. Idiots rarely see beyond their level of reasoning
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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.
Hes a rich kid who bought a degree and even if he did actually try to get a degree he’s clearly fucking terrible at it. Good economists don’t lose money owning casinos, almost no one does generally but he certainly found a way.
His ex wife though, she turned around hers and made a fortune.
Things have changed a lot today from the time he bought his degree
- One of Trump’s professors called Trump the “dumbest goddamn student I’ve ever had”.
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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.
Burn it! Burn it! Burn it!
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?
such a fan of the quote from source disproving the original post.
Only superceded by the double “this you?” screenshot
In the right circumstances it is a powerful tool. The question is, whether these circumstances apply in the current US
Is what i said.
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?
Because then manufacturers in the US employ people in the US, who then have more money to consume in the US. That requires the government to also work towards good wages though. Also it allows for industries to grow so they can use economics of scale to drive down their production prices and then their consumer prices.
Again, for developing industries it can be crucial and is tried and tested. The question is whether that is what the US needs right now.
You don’t understand the current context then.
Look up Bethlehem Steel. That’s the future of American production if Trump tries to use tarrifs to force local production.
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.
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.
I mean, he just threatened them on Russia despite our trade being nearly nonexistent with Russia for the past three years. So yeah.
There aren’t even natural reserves for every mineral/gas/etc in the US. A lot of the more advanced ones go into making computer chips, let alone their coveted Stargate AI chips. Setting up manufacturing/processing sites for each one based on imported raw materials isn’t a sudden feasible 4 year project either (yes yes I know assuming 4 years is all this crap lasts)
That’s why he wants Greenland.
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.
So where are those factories gonna come from, and whose gonna work in them? He’s also saying he’s going to get rid of all the immigrants and we only have so many people being released from prison that are willing to do non-union factory work.
And he also still thinks that a tariff is paid by the exporter and not the importer.
Tariffs affect both sides, but the side with the protectionism can build up a local industry thanks to the tariffs. (Assuming access to the relevant resources)
That is why all industrialized nations used high tariffs to protect their emerging industries and once they were established demanded low tariffs from other countries to keep their industries small and the markets dependent.
While in the short run this means a price increase for the consumer, in the long run the local employment and production increase the wealth to offset the initial price increase. That is why “free trade agreements” by industrialized nations often hav devastating effects on the developing nations they push them on. Western “free trade” has ravaged farmers and small business producers in Africa, Asia, South America…
Finally the government can spend the money it raised through the tariffs to stimulate further growth with spending, or by lowering taxes in other fields.
Trump understands very well what he does there, and it is not like the economic theory behind it is complicated. The question is, whether this strategy makes sense for the US when there is retaliatory measures taken by the affected countries seeking to export to the US.
It is the same principle like carbon taxes btw. if you oppose tariffs solely based on the notion that they are “paid by the importer and not the exporter”, you would need to reject carbon taxes, as they are “paid by the consumer, not the company.”
I don’t think you understand the actual levers that stopped tarrifs.
Funny that, I do oppose carbon taxes that are not the sole responsibility of the company PRODUCING the emissions.
that are not the sole responsibility of the company PRODUCING the emissions.
The carbon tax is obligatory by the company. The company puts it on top of the price. The consumer price increases by the value of the carbon tax.
It is the same thing. It does not matter whether a tax is “paid by the consumer” or “paid by the producer” it always ends up being part of the price of the product that the consumer pays.
I’d rather we make our own products and stop trading with the US altogether.
Agreed. Also from the US perspective. Global trade should be for bespoke high-quality regional goods, not commodities. There is basically nothing from China that the US gets that should be made in China and shipped to the US.
Someone should tell him who actually pays the fucking tariffs. I kinda get the feeling that nobody around the motherfucker even tells this dipshit things he clearly has wrong because they’re afraid of losing their status if they call him out for being a dumbass.
Maybe in some cases the price increase will stop sales (if it doesn’t, yea, it’s extra sales tax), which if there is no investment in expansion of local replacement capacity (of course not, trump and his toadies can’t think that far ahead) will lead to shortages in the US and less revenue for the exporter. Either way, it is a lose-lose situation, but trump will be happy to have hurt the exporter (or they lower the export value to absorb the tariff)…
I also think part of the plan is that voters will cyclically vote in Democrats after things really hit the fan and then they’ll be able to fix large portions of the mess that have been made before people get too comfortable and vote Republican again and they can fuck everything up.
Seems to be the pattern…
Yes, the consumer pays the tariff, but it does impact the seller as their products will now be more expensive which will potentialy drive down demand and/or eat into profits.
Also, in studies, products that aren’t imported tend to raise their prices to match the rest of the industry, rather than leaving it as it was.
Even the cost of goods made in America would get more expensive.
"and we will give you among the lowest taxes of any nation on earth,”
Ummm, I’m pretty sure most manufacturers care way more about wages than taxes. Taxes are important in white collar businesses or between areas with similar wages. But the wages of a US factory worker are much higher than a worker in China. They are likely higher than in EU, too, though maybe not by as much.
Is the plan to bring low-wage jobs to the US? Or is the plan to pay higher wages for the same job and pass the cost to the consumer? Or is the plan to add tariffs that get passed on to the consumer? Because I’m not really seeing how this helps anyone.
They probably eventually plan to bring back forced labour. They ‘deport’ people, and when that’s too arduous, they’ll round them up in camps and make them work their ‘sentence’.
I don’t think they actually stupid enough to deport their low wage vulnerable workforce when they can just further exploit them.
Now with all the private prison people he has in his cabinet this is making more sense. The one thing that they will have an abundance of is prisoners people being falsely imprisoned for bullshit charges. What better way to use them than to get some free labor
Plan?
You mean “Concepts of a plan”
I’m also going to ask Saudi Arabia and Opec to bring down the cost of oil
We don’t deserve our outrageous amounts of wealth and oil, i hope one day it will dry up and just convince people that living under an autocratic monarchy isn’t so great (who would’ve thought??? 🤯)
I think the more salient thing here is they’ll just tell him no.
I think Trump and his people are soon going to find that manufacturers need the U.S. a lot less than they think they do.
Probably. But MBS is an idiot so I wouldn’t put it past him to agree, probably to get trump to like him thus increasing his power over the US.
Im not him though, this is complete speculation.
Just noticed your edit, we depend on the US for our military who are complete clowns, but the real scare is the SANG, the national guard. The sauds are paranoid of coups or revolution so the SANG are stronger than our army. Without the US the national guard is weakened thus leaving the monarchy vulnerable then overthrown.
I was under the impression that he owed them a lot of money, but maybe I’m misremembering.
I think he does but I’m not sure. But it’s still very important for us to have US support (explained in top edit)
So if we get to a point where tarrifs eventually lead to products being made domestically, anf this reduces global shipping, does Trump understand that will be a low carbon policy?
Yes, he said that as one of his major points on his Rogan interview, granted he said that while mocking Biden’s climate policies.
Cool let him isolate the US from the rest of the world
I hope that’s the result. Unfortunately, here in Canada there are companies looking at doing some manufacturing in the US (i.e. sending incomplete parts for finishing).
*edited for grammar error
Meanwhile, this orange traitor fucktard shut down the entire fucking NIH. What the fuck do any of his enablers think is going to happen to all of pharma and all of biomedical research? How the hell can we make drugs without clinical trials? Where are the drugs going to be made?
It could not be more obvious that he is working to destroy the United States at the behest of foreign adversaries.
Oh simple, we just won’t check if they’re safe or effective but sell them to Americans anyways
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…
Lol
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.
