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206
The Genius of Tariffs and The New America!
posted 1 year ago by thekingofracine 1 year ago by thekingofracine +206 / -0
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– ThomasMaker 1 point 1 year ago +1 / -0

Size of American market means that many will set up shop in the US to not loose that market(cars for instance, tariffs will mean that cars made outside of the US will cost significantly more, meaning majority of US car buyers will look to US made cars).

Quite a few products where the US is the larges single country market for them(weapons manufactures, US civilian markets and many have made factories in the US as a result of tariffs and limitations that already existed under the old system) and once production to supply(retain) that market is set up in the country then a significant percentage of a company's product is made in the US.

Now economy of scale kicks in with maintaining production for a smaller market share outside of the country where they have their largest single market will for many(not all, very product dependent) start to become a diminish returns proposition.

Think about it, something similar has turned China into a manufacturing powerhouse, but in the case of China it isn't the Chinese market size but rather the production cost side of the equation that has made putting all production into Chinese factories that has given the largest profit margin.

Loosing the US market chunk by keeping production in China is a loss in profit many companies can't survive and that will really hurt many of the companies that can survive it because they have a large market that isn't the US(even if only 20% of a company's production goes to the US, loosing 90+% of those 20% will still mean a close to 20% reduction in profit......)

Many countries will nix taxes/tariffs on US products to keep factories in their country even if more than 50% of those factories production doesn't go to the US, due to the simple reality that the company owning the factory moving it to the US will see them loose ALL tax revenue from that company's sales regardless of what country they sell their products to.

You are using the tariff conditions/realities of the old DS system as an argument against a new system, the whole point of all of this is to nuke the old way of doing things(although many clinging to the way it has always been will definitively cause some birthing/growing pains...).....

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– ItsNotMeISwear 1 point 1 year ago +1 / -0

Guess we'll see in the coming months. 🤷‍♀️

I'm going to say that many of these tariffs are going to be retracted in the next few weeks, and many more are going to be delayed.

I'll be extraordinarily surprised if many of them ever go through.

Obviously, this would destroy any hope of manufacturing coming back to the US.

People are acting like companies manufacturing in foreign countries are going to see Trump issue these tariffs, throw their hands up in defeat, and say, "Damn, he got us!".

It's going to take a hell of a long time for companies to be hurt enough by tariffs to pull up stakes in other countries and build factories here, which is extremely costly for them in itself.

So, tell you what, in the next few months, whenever any of these tariffs are revoked, or delayed, I'll come here and remind you.

And anytime a company moves their manufacturing here because of the tariffs (preferably something more than some piddly ass effort at PR), you come and remind me.

That will help preventing any memory holeing of all this. Which is a severe issue here.

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– ItsNotMeISwear 1 point 1 year ago +1 / -0

Also, not trying to take the piss outta you, or anything of that nature, but you keep saying "loose" for "lose". They're two different words.

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– ThomasMaker 2 points 1 year ago +2 / -0

Not a native english speaker+ dyslexia...

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– ItsNotMeISwear 1 point 1 year ago +1 / -0

Then you're doing fantastic, and now you know to be conscientious in the future about the loose/lose issue. ✌️

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