Tariffs can create jobs. Key word, can. They are not guaranteed to work. It’s all dependent on how the company or country on the receiving end will handle them. If they just transfer costs down the chain, then it will do nothing. If they choose to try and keep their prices competitive, then they will bring their manufacturing to America. Or, in terms of a country, Columbia being a good example. Getting them to do something by threatening tariffs and then removing them when they comply, that is indeed what you could call the art of the deal.
Now if the tariff gets removed because it’s failed to get the company or country to do as desired, then that isn’t art of the deal. No deal was made, and nothing really changed.
The real metric should be if the jobs/internal profit tax created spurs enough economic activity to offset the population having to pay higher prices.
Almost always the answer is no. You help a very small set of people and hurt everyone else much more. Even other US jobs. If you buy your widget for 20% more and pass that cost to consumers, that consumer can't use that money to buy goods/services in the US.
IMHO if you think there is a national security risk, or you want an industry active for whatever reason you just let the public sector innovate or die. And when it files for bankruptcy US can buy it for pennies on the dollar and keep it running at whatever level it deems necessary non profit.
Let Chinese cars in tarrif free. If Ford dies just buy it and retool everything to make ford fusions(Whatever the equivalent Truck/SUV is). Make X a year, sell at a mild loss if you have to (Basically how it works at a society level anyway). Everyone is much better off, and you still keep US production going.
The current Tarrif on Chinese electric cars is 100%, it's absurd.
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u/Fun_Strategy2369 25d ago
Tariffs can create jobs. Key word, can. They are not guaranteed to work. It’s all dependent on how the company or country on the receiving end will handle them. If they just transfer costs down the chain, then it will do nothing. If they choose to try and keep their prices competitive, then they will bring their manufacturing to America. Or, in terms of a country, Columbia being a good example. Getting them to do something by threatening tariffs and then removing them when they comply, that is indeed what you could call the art of the deal.
Now if the tariff gets removed because it’s failed to get the company or country to do as desired, then that isn’t art of the deal. No deal was made, and nothing really changed.