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this post was submitted on 05 Mar 2025
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No Stupid Questions
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You do it by incentivizing building factories, up to the point where a company can be competitive with those outsourced industries. Something kind of like the CHIPS act that Trump just axed. Random and blanket tariffs will not help. Tariffs can mainly only help prevent an industry from leaving. For example, we have huge tariffs on Chinese EVs because they would outcompete every US manufactured EV and we would lose those jobs.
The reality is that it's very difficult to take a centrist position here. Trump's tariffs make no sense. They will not bring back any jobs because no one is going to build a factory in the next 4 years if there's a chance the next president reverses Trump's decision.
It's also a bad move to tariff our main allies because not only does it make things more expensive for Americans, it erodes trust in our nation and destabilizes our position of dominance globally. In the eyes of the world, we've gone from stable and reliable to dangerous and unpredictable. It will take a lot more than 4 years to recover from that.
The big worry people have is a potential incoming economic crash. We're already dealing with a very weak labor market, uncomfortably high inflation, irrational stock valuations, and high housing prices. If now a huge wave of federal layoffs, which will likely result in instability of federal programs many Americans rely on, hits at the same time as what will essentially be artificially caused inflation through tariffs, it could send things into a downward spiral.
Well said and I agree :)