Hey, you have to factor in things like market capture! They could be operating entirely at a loss just to ensure no other competitor can operate in the same market.
I think what you’re missing might be that you’re assuming that the producers stay the same over time. I.e. if it costs more to get that product to you from China, then an US company would produce it instead in the future to circumvent the tariffs. That brings labor/jobs to the US. I think that is the idea behind the tariffs. Any questions left?
Assuming availability of goods and materials (which isn’t a given but let’s pretend it is) the friction there is set up costs in a fickle, unstable legislative environment in which tarrifs can be withdrawn at any time.
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Hey, you have to factor in things like market capture! They could be operating entirely at a loss just to ensure no other competitor can operate in the same market.
(/s because duh more cost = more price)
I think what you’re missing might be that you’re assuming that the producers stay the same over time. I.e. if it costs more to get that product to you from China, then an US company would produce it instead in the future to circumvent the tariffs. That brings labor/jobs to the US. I think that is the idea behind the tariffs. Any questions left?
Assuming availability of goods and materials (which isn’t a given but let’s pretend it is) the friction there is set up costs in a fickle, unstable legislative environment in which tarrifs can be withdrawn at any time.
who says the tariffs are going to be withdrawn? lol
Are we watching the same shitshow? He changes his mind more often than he changes his socks.
Starting a business based on the whims and promises of Trump would be rather foolish.
In his last presidency some of the industries amping for tarrifs just got their faces eaten.