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Old 15th May 2019, 04:52 AM   #1489
Horatius
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Originally Posted by phiwum View Post
I suppose the 4% increase in cost would lead to some increase in buying American and hence American profits and employment. But if China is really subsidizing their manufacturers in order to keep prices the same, then the tariffs aren't doing what they're supposed to do, namely make American goods more competitive.


But if the costs have gone up, it also means that the American producers have raised their prices as well.

The whole point of the tariffs is that US costs to produce are higher, and so they have to artificially raise the Chinese costs to make the US competitive. If the US is competitive after only a 4% rise in prices, they probably didn't really need the help in the first place. So if prices have only gone up 4%, then the American producers have probably also sucked up some of the costs.

It's a very complicated topic, which means Trump basically has zero chance of actually understanding what he's doing.
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