Tariffs - There is substance in this move

I'm so tired of the myopic knee-jerk criticisms of the Trump Tariffs. There's so little high-level consideration of the true impact of this sweeping change.

As concerns bringing other governments to the negotiating table, too many thoughtlessly claim that there's no reason for foreign leaders to negotiate because they have nothing to lose to high tariffs . . . only the manufacturers do.

Not so . . . Some companies (both foreign and domestic) will relocate part or all of their foreign operations stateside to maintain their competitiveness. This would cost those foreign nations valuable jobs.

For those companies which prefer the status quo to relocating jobs stateside, they risk losing business to companies in other nations which are subject to lesser tariffs. Moreover, while their products will indeed be more expensive to the end-user, those purchases will inject unprecedented revenue into the coffers of the United States. Trump would be wise to direct such revenue to relieving the pain associated with higher prices.

Finally, the emergence of higher price points for affected products will incentivize the re-entry of many who previously abandoned their markets for lack of profitability. This will not only restart American manufacturing, but make us more agile if we ever need to again mobilize in the face of military aggression.

These small-minded Trump-deranged simpletons need to really think before reacting, instead of reacting before thinking.

Trump is far from my favorite personality, but there is substance in this move, and almost all are overlooking it.

 

Farms

Cattle Ranches

U.S. Shrimp industry


Discuss among yourselves. Or not. Then tell me about food shortages and overpriced groceries, after reviewing who/what actually owns same.

 

Well, the vast majority of farms (agricultural land) is owned by US farmers. Same with cattle ranches. The Us shrimping industry is elated about the tariffs.
Now the processing industry, JBS/ Smithfield, is a problem.
Is that why people may be worried about food security?

 

I think there's some merit to tariffs, but I'm skeptical it's being done correctly here. Even if manufacturing could come back, it's going to take time and enormous initial investment to build and staff the facilities. Meanwhile, because the tariffs aren't targeted, every part of the process becomes more expensive.

Wanna build a factory? All the materials just became much more expensive. Need to staff that factory? Wages have exploded because basic needs like groceries cost more. How about free coffee to motivate your staff? Doubt it, we can't grow coffee beans at scale in the U.S.

 

Is it soup yet?

 

Mammy Nunn’s back . . .

 

Got news for you, GW. There is a tremendous amount of vacant factory space nationwide, and there’s plenty of inexpensive mothballed manufacturing machinery that could be recommissioned to kick off nascent businesses until they grow enough to make those greater investments.

 

Someone should slap some sense into you.

 

What do those 'mothballed manufacturing machinery' make? Not cutting edge anything.

 

Who said cutting edge products are what must be made, or that cutting edge machinery is necessary to get started? It isn’t.

We need to produce all manner of products, and not just high tech stuff.

I’d venture that businesses born on the backs of state of the art equipment are less likely to survive than those that start small and simple, become profitable, and then make investments to scale up and become more efficient.

Finally, you might be surprised to learn that vintage manufacturing equipment is often preferred to less durable modern equipment by the most knowledgeable in industry, depending on what is to be made.

 

I think you highly overestimate how much abandoned factory space and equipment is laying around ready to start up again. Also the assumption that it's the correct space and equipment to fill the needs of... *checks notes*... everything at once, because these tariffs are not sector targeted.

 

The national industrial vacancy rate in the US is presently around 8.2% . . . well up from the low of 2.9% in Q2 2022.

Used manufacturing equipment prices are depressed due to high inventories and softer demand.

As concerns industry-targeted machinery and how well that matches needs, you may be right and I may be right. Perfectly matched or not, it certainly provides opportunities . . . for individuals, for families, for business coops, for venture capitalists, for established growth-minded businesses, etc.

In any case, plenty of potentially productive flotsam floats in the wake of the woke (like that @charley? . . . I think I should copyright that one).

 

I DEFINITELY WOULD!

 

I’m all full up . . . Besides, I prefer to do the slappin’.

 

Agree, and THAT is the point....the farm owners and ranch owners do not control their own destiny. Their combined percentage of the U.S. GDP is 0.8%. The processors of their product have a combined 6% of GDP, and 65% are foreign entity controlled, and set the price of the product based on....yep....you are correct.....tariffs. The higher the tariffs on the foreign entity, the better bargaining position for the producers farms and ranches).

These foreign entities have controlled our farms and ranches since the mid-70s.

I am all for import tariffs the higher the better, until other countries realize that Ukraine can not feed them, Russia can not feed them and Red China can not feed them, so shut up and be nice to us.

 

My household doesn't consume Smithfield products. Smart move, buying a conglomerate having such an Anglo name. Americans would do well to boycott them in favor of alternatives, but probably are largely unaware of the Chinese connection.

 

It's an import Tariff not an Export Tariff. Any meat acquired and processed in the US by Smithfield or JBS is not subject to the tariff. Any retaliatory measures imposed on US goods by China or Brazil I am fairly confident Smithfield will be exempted in China. JBS and Brazil I am not as certain but guessing 50/50 the same.

 

Mine wasn’t a reply related to the subject of the thread . . . Just enjoyed commenting tangentially.

 

I have doubts you understand corporate tariffs, however, you are correct that is 1/2 of the equation.

 

They should put 100% tariffs on.....
China
Russia
India North Korea
Brazil
Venezeula
Belarus
and all Nations that deal with Putinite Regime.