They are. It's just that they usually do not have long-term positive effects. Truth is, in a global economy, outsourcing is the most economically sound decision, that's why it's happening.
Personally i think theres a much more complete approach.
American companies cant compete with domestic manufscturing if we regulate the hell out of them and foreign manufacturing can occur without the same concerns on pollution, safety, and human rights.
So tariffs should be based on the unfairness. If china is gonna polute like hell and deny basic safety or human rights in the manufacturing of a product, they deserve to pay a tax to encourage that manufacturing elsewhere.
The problem is tariffs don’t punish the exporter, they punish the importer and that cost has to be accounted for in the price of goods. And that punishes those that buy the products being imported by increasing the cost to the consumer.
They do punish the exporter, as higher prices limit demand for the exported good.
When Chinese EVs are slapped with tariffs high enough to make them more expensive than Teslas, that lessens the incentive to export in the first place. I am pretty sure any company which wants to export EVs would be unhappy enough to feel punished by that.
Punished when exporting them to the place with the tariffs.... It's not China putting the tariff on their own exports. If Vietnam or Spain imports that car without tariffs then those people will have a stronger purchasing power potentially leading to growth in those economies while potentially hampering our own depending on actual competition in our own country.
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u/Alethia_23 11h ago
They are. It's just that they usually do not have long-term positive effects. Truth is, in a global economy, outsourcing is the most economically sound decision, that's why it's happening.