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| The issue is when both the $6 and $2 wrenches are made by American companies. The $2 is made in China using the country of China to supply the energy, infrastructure, work force, set environmental standards, corporate tax structure (if any) and all other factors associated with cost structure of building a finished item.
And then that wrench is brought to America to be sold in a competitive market against the likes of SK Tools.
Let's say it is a John Deere wrench that is made in China and ends up on the shelf in an American retail outlet and the purchaser is looking at the JD wrench and the SK Tools wrench and thinking they both look about the same. The JD wrench may even be higher priced. Does the JD made wrench in China carry the same cost to build as the SK Tools wrench?
How do you know what the cost structure is to manufacture in China? The US government borrows money and taxes citizens to engage in LGBTQ campaigns, DEI initiatives, green energy, pay illegal immigrants, etc where as China borrows money to build energy infrastructure and transportation as well as other things necessary for an economy. And so, does China charge John Deere an appropriate cost for such infrastructure to enable the $2 wrench to be built for $2.
So, if China is effectively subsizing the JD wrench to be built in China and sold in the US to take away market share from SK Tools, are you so sure there is no cost to the average American?
Is it ok for SK Tools to eventually collapse and go out of business while China continues to subsidize JD to build products. If that $2 tools sell for $6 in the US, who makes the profit? Wouldn't it be JD.
So, we can say JD wrenches is a bad example, but JD most certainly makes agricultural products and parts in China that end up in America and compete against US made products.
But I suppose tariffs are a bad idea and so this arrangement should continue till all manufacturers on US ground get destroyed. Because the tariffs only effect the consumer. Is that about right? Or is there really nothing made by US companies operating in China that comes to America. Doesn't exist so not a plausible scenario for why tariffs matter? | |
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Tariffs from below
