What would stop the US mega corps from just raising their prices 19pct? Still cheaper and free profit.
i honestly don’t understand the question. why should they do that? what’s stopping them now? what’s your point?
Why would large manufacturers move to a US with all its pesky eco rules and labor protections if you can just stay in your current country where you invested in your factories and just have the US consumer eat the price hike?
because you can now produce at home at a competitive price?
Investing in a country due to tarrifs is risky, cause if the tarrifs ever go away you invested in an uncompetitive manufacturing plant.
indeed, longterm stability and predictability is important. there are unpredictable factors in 3rd world countries the west civilization currently exploits as well, so the goal is to be more stable and predictable at home. i am not saying it is easy.
Tarrifs will be met with counter tarrifs causing other sectors to implode. The last round of trump tarrifs on china needed to be spent on farmers in the US almost completely because china tariffed their products and their main customer base in china dissapeared over night.
You are either being silly or intentionally taking weird positions.
the current prices are set by the market. If an artificial influence like a tarrifs overnight makes part of the products a certain percentage more expensive, the market will readjust to this new reality. Since companies love profits, it will adjust upwards to get as close to the increased conpetitors price while keeping your advantage.
“at home” for a lot of companies is not the US. Your reasoning is poor here, companies are driven by profit not feelings.
No it’s not easy indeed, see previous point. And the competitive edge the companies have by staying in cheaper countries helps them be competitive in the rest of the world.
it worked? The Trump tarrifs stayed under biden… cause flip flopping policy is sometimes worse, and removing the tarrifs without china removing theirs will just make things worse. Did your stuff get cheaper? Or is that Bidens fault?
i honestly don’t understand the question. why should they do that? what’s stopping them now? what’s your point?
because you can now produce at home at a competitive price?
indeed, longterm stability and predictability is important. there are unpredictable factors in 3rd world countries the west civilization currently exploits as well, so the goal is to be more stable and predictable at home. i am not saying it is easy.
so… it worked?
You are either being silly or intentionally taking weird positions.