There are different kinds of tariffs and different first and second order effects. As usual, don’t believe liberals. If a country succeeds by having low labor costs, then they will generally eat the tariffs because there are several low labor costs countries ready to step right in. Other kinds of tariffs makes it much more favorable to invest in the US and produce here. Another kind of tariff gets a country to drop or drastically lower their tariffs and thereby make our products competitive in their countries. Another kind of tariff is used to change non-trade policy decisions by that country. Another kind of tariff is a mild one that is used to offset income tax reductions.
With more competition and profits occurring inside the US, the more investment will be made in productivity. Those investments will be less risky with a proper tariff structure.
There are different kinds of tariffs and different first and second order effects. As usual, don’t believe liberals. If a country succeeds by having low labor costs, then they will generally eat the tariffs because there are several low labor costs countries ready to step right in. Other kinds of tariffs makes it much more favorable to invest in the US and produce here. Another kind of tariff gets a country to drop or drastically lower their tariffs and thereby make our products competitive in their countries. Another kind of tariff is used to change non-trade policy decisions by that country. Another kind of tariff is a mild one that is used to offset income tax reductions.
With more competition and profits occurring inside the US, the more investment will be made in productivity. Those investments will be less risky with a proper tariff structure.