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You're right that tariffs can have strategic goals,
Posted on: April 28, 2025 at 11:55:20 CT
Tiger_Claw STL
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like encouraging domestic manufacturing and reducing reliance on adversarial countries. No disagreement there.
But it's important to fully understand how tariffs actually work — because it's not a simple "good for America" lever.
Tariffs are taxes.
They are placed on imports at the border.
But the foreign company doesn't pay them.
The U.S. importer (the American company bringing in the goods) pays the tariff.
That cost almost always gets passed down to the U.S. consumer in the form of higher prices.
So while the goal might be to bring back manufacturing, in the short and medium term, the reality is:
Consumers pay more for goods (everything from appliances to building materials to clothing).
U.S. businesses that rely on imported materials face higher operating costs, making them less competitive globally.
Inflation pressures increase, especially on lower-and middle-income families who spend a bigger share of their income on goods.
And manufacturing doesn't just magically come back overnight.
Building up domestic factories, supply chains, and skilled labor takes years and billions in investment.
Companies often don't relocate back to the U.S. — they shift to other low-cost countries like Vietnam, Mexico, or India instead of China.
So you can end up hurting American consumers without fully achieving the goal of "bringing jobs back."
Real-world examples:
Trump's China tariffs from 2018–2020 led to billions in extra costs for U.S. consumers, while manufacturing growth was limited and many companies simply moved operations to other foreign countries, not America.
Multiple studies (including from the Federal Reserve, Brookings Institution, and even pro-tariff trade groups) confirm that consumers bore almost all the cost increases.
Bottom line:
Tariffs can be part of a long-term industrial policy if combined with real investment in domestic manufacturing, education, and infrastructure.
But pretending tariffs are just a "stick it to China" move without consequences hurts the very middle class you're trying to help in the meantime.
Good policy is about balancing goals and understanding costs — not ignoring the short-term pain because the long-term vision sounds good.
But it's important to fully understand how tariffs actually work — because it's not a simple "good for America" lever.
Tariffs are taxes.
They are placed on imports at the border.
But the foreign company doesn't pay them.
The U.S. importer (the American company bringing in the goods) pays the tariff.
That cost almost always gets passed down to the U.S. consumer in the form of higher prices.
So while the goal might be to bring back manufacturing, in the short and medium term, the reality is:
Consumers pay more for goods (everything from appliances to building materials to clothing).
U.S. businesses that rely on imported materials face higher operating costs, making them less competitive globally.
Inflation pressures increase, especially on lower-and middle-income families who spend a bigger share of their income on goods.
And manufacturing doesn't just magically come back overnight.
Building up domestic factories, supply chains, and skilled labor takes years and billions in investment.
Companies often don't relocate back to the U.S. — they shift to other low-cost countries like Vietnam, Mexico, or India instead of China.
So you can end up hurting American consumers without fully achieving the goal of "bringing jobs back."
Real-world examples:
Trump's China tariffs from 2018–2020 led to billions in extra costs for U.S. consumers, while manufacturing growth was limited and many companies simply moved operations to other foreign countries, not America.
Multiple studies (including from the Federal Reserve, Brookings Institution, and even pro-tariff trade groups) confirm that consumers bore almost all the cost increases.
Bottom line:
Tariffs can be part of a long-term industrial policy if combined with real investment in domestic manufacturing, education, and infrastructure.
But pretending tariffs are just a "stick it to China" move without consequences hurts the very middle class you're trying to help in the meantime.
Good policy is about balancing goals and understanding costs — not ignoring the short-term pain because the long-term vision sounds good.
Please explain why this message is being reported.
MESSAGE THREAD
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You're right that tariffs can have strategic goals, - Tiger_Claw STL - 4/28 11:55:20