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He wouldn't have said 'My senseless tariff war will...',
Posted on: February 3, 2025 at 15:25:20 CT
JeffB MU
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M.O.B. Votes:
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but *may* have said or implied that:
1. His tariff's will lower prices in the US
2. bring jobs to America
3. swing the balance of trade to the US
I would be interested to see links to direct quotes of his to see whether I agree with your paraphrase of what he said, but taking those rough ideas at face value, my take would be:
1. I would expect tariffs to raise prices on goods & services in the US in the short run, assuming the tariffs remain in force, of course. If they are bargaining chips that are removed in short order... no.
In that case, depending upon whatever agreements are reached perhaps they actually could lower prices in that particular area.
2. Tariffs could well increase the number of jobs in the US. We saw many companies leave the US under free trade agreements and we're seeing companies saying that they are now planning on locating some plants in the US. If the cost of foreign goods & services goes up relative to the cost of those of US companies & workers then the basic laws of economics would say that people would hire more US workers and goods and services. Of course there could be offsetting factors, but in general # above sounds reasonable to me.
3. Similar to #2, if the relative cost of goods & services of US companies & workers drops relative to those of foreign countries and workers the law of supply and demand would generally indicate that in the US, more orders would be coming in for the US produced goods and services. Again, there are other variables in play, but the expectation isn't unreasonable.
1. His tariff's will lower prices in the US
2. bring jobs to America
3. swing the balance of trade to the US
I would be interested to see links to direct quotes of his to see whether I agree with your paraphrase of what he said, but taking those rough ideas at face value, my take would be:
1. I would expect tariffs to raise prices on goods & services in the US in the short run, assuming the tariffs remain in force, of course. If they are bargaining chips that are removed in short order... no.
In that case, depending upon whatever agreements are reached perhaps they actually could lower prices in that particular area.
2. Tariffs could well increase the number of jobs in the US. We saw many companies leave the US under free trade agreements and we're seeing companies saying that they are now planning on locating some plants in the US. If the cost of foreign goods & services goes up relative to the cost of those of US companies & workers then the basic laws of economics would say that people would hire more US workers and goods and services. Of course there could be offsetting factors, but in general # above sounds reasonable to me.
3. Similar to #2, if the relative cost of goods & services of US companies & workers drops relative to those of foreign countries and workers the law of supply and demand would generally indicate that in the US, more orders would be coming in for the US produced goods and services. Again, there are other variables in play, but the expectation isn't unreasonable.
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He wouldn't have said 'My senseless tariff war will...', - JeffB MU - 2/3 15:25:20