#TariffsPause
TARIFFS: OPINION
In this post, unlike most of the ones we make, we will express our OPINION on the taxation policy of imported products implemented by the Trump administration.
No country in history has managed to develop its industry solely by imposing tariffs. Especially generalized tariffs, as is the case here. When there is strategic planning aimed at developing certain economic sectors, a period of tariffs can be beneficial. Several nations have done this, including the USA, which has never stopped being protectionist. The USA, just like any other country, cannot produce everything it needs. How to balance the trade deficit by taxing a country that has a vital good for domestic industry, but does not need it, or simply cannot afford the products made in the USA? Vanilla, produced ONLY in Madagascar, is an example.
Another point concerns the infrastructure necessary for export. China currently has unbeatable logistics. The USA's logistics are outdated, precisely due to many years of deindustrialization. These things cannot be created overnight. In some sectors, it is cheaper to seek new consumer markets than to move to a country where production and transportation costs will be much higher.
To conclude, US domestic industries need imported supplies. Will they halt production until they find suppliers? If they pass on the costs to consumers, the pressure on the Trump administration may become unsustainable. If they reduce profit margins, they will have to lay off workers. In any case, the future situation seems worse than the current one.
In summary, this appears to be a strategy that does not hold up. Not even as pure political marketing, since the inevitable retreat on tariffs will demonstrate weakness in front of voters more committed to Trumpism.
AND YOU, WHAT DO YOU THINK OF THIS STRATEGY? LEAVE YOUR COMMENT!$ETH
TARIFFS: OPINION
In this post, unlike most of the ones we make, we will express our OPINION on the taxation policy of imported products implemented by the Trump administration.
No country in history has managed to develop its industry solely by imposing tariffs. Especially generalized tariffs, as is the case here. When there is strategic planning aimed at developing certain economic sectors, a period of tariffs can be beneficial. Several nations have done this, including the USA, which has never stopped being protectionist. The USA, just like any other country, cannot produce everything it needs. How to balance the trade deficit by taxing a country that has a vital good for domestic industry, but does not need it, or simply cannot afford the products made in the USA? Vanilla, produced ONLY in Madagascar, is an example.
Another point concerns the infrastructure necessary for export. China currently has unbeatable logistics. The USA's logistics are outdated, precisely due to many years of deindustrialization. These things cannot be created overnight. In some sectors, it is cheaper to seek new consumer markets than to move to a country where production and transportation costs will be much higher.
To conclude, US domestic industries need imported supplies. Will they halt production until they find suppliers? If they pass on the costs to consumers, the pressure on the Trump administration may become unsustainable. If they reduce profit margins, they will have to lay off workers. In any case, the future situation seems worse than the current one.
In summary, this appears to be a strategy that does not hold up. Not even as pure political marketing, since the inevitable retreat on tariffs will demonstrate weakness in front of voters more committed to Trumpism.
AND YOU, WHAT DO YOU THINK OF THIS STRATEGY? LEAVE YOUR COMMENT!$ETH