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danielvf 2 days ago

Yes, it's a very logical part of a tariff regime, and tariffs penalize domestic manufacturers without it.

But wow, are tariffs (and other micro taxes) disruptive on getting things done efficiently.

Levitz 2 days ago | parent | next [-]

>But wow, are tariffs (and other micro taxes) disruptive on getting things done efficiently.

Well, that depends on what you are getting done.

If your objective is solely to get a product done, the most efficient way is probably going to involve terrible salaries plus ample disregard for the environment and human life. Anything else is going to be disruptive to that end.

bratwurst3000 2 days ago | parent | prev | next [-]

I have the problem since weeks. An electric device made for me with billing isnt in the catallog of regular stuff or whatever and now they need to figure out what it could be because my description is not enough -.-

spwa4 2 days ago | parent | prev | next [-]

You mean this fixes the first order effect that penalizes domestic manufacturers, assuming correct information. It does not solve it, there's second, third, fourth, ... order effects. And there's no rule those are smaller than first order, in fact, they're almost universally more.

Domestic manufacturers are still disadvantaged by having to pay tariffs for materials used for the product, but not present in the final product. And foreign manufacturers still don't. If used in machines (and used up), used in mining (and used up), used in transport, used in energy production, ...

These costs are very large, especially because specific materials are often not available worldwide, or have large differences in quality due to availability of tiny amounts of additives for alloys or compounds. These things do lead to very large differences in quality, and thus in value. You can't model that as a government, it's just not going to happen.

There's no way to fully analyze an entire economic chain (especially when almost everyone involved has a financial incentive to sabotage you doing that correctly, and that includes foreign governments). You'd think this wouldn't have to be explained to either Americans or especially a supposed "defender of capitalism", but here we are.

jayd16 2 days ago | parent | prev [-]

I mean...they're still punished by tariffs with these changes, but they're also punished without them.