Absolutely right.
So, Donny Joe wants to buy a TV. He sees a Samsung for $300, or a domestic Magnavox for $600.
He buys the Samsung and Magnavox loses out.
A 100% tariff is introduced. The Samsung is now $600, just like the Magnavox.
Donny Joe buys American… All is good and Magnavox survives.
Seems like a good thing right?
Except that Donny Joe has paid $300 extra…
And… Magnavox, like almost every domestic manufacturer, no longer makes anything in the US. The name was sold to the Japanese via Philips, decades ago.
So, what ‘domestic’ manufacturing is still there to protect?…The EV car industry, yes, That is true, if Donny Joe wants a $80,000 new car, those tariffs ensure he can get a Tesla or an Escalade.
But, if he wants a $30,000 EV , or a small tough truck like a $35,000 Toyota Hilux, because he doesn’t HAVE the income to afford an $80,000 finance package … he’s fucked, because…Tariffs.
Donny Joe, and you, and me, we PAY out of our wages for tariffs. Now you might have a 6 figure income, and the difference between $300 and $600 is neither here nor there, but it matters to Donny Joe…New TV or health insurance… Yep, so no TV then…..
Trumpian, riddle me this;
You need a new T.V.
However, Trump has slapped a 50% tariff on imported Chinese televisions.
What used to cost $500.00 now costs $750.00.
You say, “Fuck this, I’m buying an American-made T.V.”
So you go looking for one.
Of all the American-made T.V.’s out there, which one do you buy?
Also, your cellphone dies.
Or becomes obsolete.
You decide to replace it with a really nice iPhone
You looked at some last month, and the model you want costs about $1,000.
This month after Trump’s tariffs take effect, it’s now $1,500.
Once again, you say, “Fuck this, I’m buying an American-made phone.”
You go down and look at all the available American-made cell phones.
Which one do you buy?
Something that the most upvoted answer didn’t clearly explain is a tariff isn’t imposed on the exporter. It’s imposed on the importer. Meaning that if you’re car has a single part in it manufactured outside the US you’re going to see a price increase of 20–60 percent AT minimum for that part added to the cost to you at sale. Most companies aren’t going to be Happy just making their money back, they’re going to want to somehow turn that tariff into profit.
Second do you have any idea how long it takes to build a manufacturing facility? Well it took 2 years to build a hospital here, without production lines, etc. It takes 6–12 months to build and stock a Walmart. So imagine the time it’s going to take to build clothing plants, car plants, computer manufacturing facilities, etc. For the foreseeable future, the American people will be stuck paying for that tariff without an alternative.
Are you aware that there are many products that we import that we don’t make in this country?
Are you aware there are many products that we can’t make here because we would have to import the ingredients or parts?
Are you aware that shifting manufacturing here would also be more expensive because our building and labor costs are higher?
Are you aware that it takes years to build factories and that building them would require imports?
Are you aware that we do not have enough people to staff those factories especially if Trump starts deporting illegal workers?
There is zero possibility Trump’s tariffs won’t cause inflation and retaliation from countries we trade with. There could also be other painful retaliation. About 95% of our ibuprofen, 91% of our hydrocortisone, 70% of our acetaminophen and 45% of our penicillin come from China.
This is the problem with Trump and Trumpers. They think simply which many people do. The problem is really that they think their simple thinking is superior to those of us who have actually studied the subject.
