What I want to know from all you Trumpers who are complaining about grocery, goods and gas prices… please explain on 10-20% tariffs and up to 60% tariffs on Chinese imports are going to make things cheaper?
I honestly don’t think you or Trump know how tariffs work.
Also - explain how mass deportations is going to make life cheaper as well.
I’ll wait…
Ok, Pharm. I’ll play..
But, here are the rules.. no conjecturing on what MIGHT happen. We have to discuss real data. And it needs to be non-partisan. You up for it?
Real facts:
In 2011, Barack Obama put tariffs on Chinese Solar modules, ranging from 15% -250%
In 201, Obama put additional and new tariffs on Chinese and Taiwanese solar modules
In 2017, Donald Trump put tariffs of 25% on solar modules from effectively the rest of the world.
In 2022, Joe Biden renewed the Trump tariffs.
Real fact:
Over that duration, the cost of imported solar panels FELL approximately 85%
“A significant portion of the cost declines over the past decade can be attributed to an 85% cost decline in module price. A decade ago, the module alone cost around $2.50 per watt, and now an entire utility-scale PV system costs around $1 per watt,” said NREL Senior Financial Analyst David Feldman. “
The data irrefutably shows that tariffs did not result in an increase in price of the tariffed product in the U.S. Rather, it forced the Chinese government into a more robust, and unsustainable, pattern of increased subsidization of a targeted key “China 2025” industry.
In fact, one of the largest drivers of the price decline was China’s illegal (by WTO rules) subsidation of their industry that led to approximately 4x over-capacity relative to global demand.
The strategic consequence: after a decade of growing Chinese advantage, reflected as a percentage of domestic market share, over the last 36 months, US manufacturing has INCREASED, as a percentage of domestic market share, as China has continued to fall.
I don’t think anyone has said that tariffs are a quick fix, but they are 1 tool that can effectively be used to shift the cost burden back to China in areas in which the Chinese believe are strategic to their economic interests. The bet is that the Chinese economy is more dependent on the U.S. buying its goods cheaply , than the U.S. economy is on buying Chinese goods cheaply.
We have spent the better part of 40 years offshoring our manufacturing. To expect the hangover from a 40-year binge to pass rapidly is unrealistic. This is detox, not a morning after from a wild night.