'Trickle down just doesn't work': The truth about tariffs and when they're actually useful - Velshi - MSNBC

[Rhiannon12866]

There’s been a lot of talk about tariffs lately, but some of it can be misleading. “Our trade policy is working in tandem with our other economic policies,” says the Biden Administration’s U.S. Trade Representative, Amb. Katherine Tai.

Tariffs are a component of that policy. Economists have criticized the possibility of across-the-board tariffs on all imported goods, but tariffs can – and have been – a useful tool in economic and trade policy, when used strategically. “Tariffs and trade can and – in our view – must be used as part of a strategy for growing the middle class and empowering the working class,” Tai tells Ali Velshi. “That is the basis from which we proceed.” - Aired on 09/29/2024.

[BrianTheEVGuy]

1. The sad truth is that tariffs don't work in our present configuration

When all of the manufacturing is offshored (along with associated wages), there’s no domestic supply — and wages are too low to support higher prices for everyday and durable goods.

The sad truth is that for 35 years, US policy (with both parties) has been to allow the offshoring of most manufacturing. It’s just incredible that now that all of the manufacturing is offshored, we are now claiming to be concerned about Chinese products. All of our products are Chinese — especially tech products. Sure, they have an American logo and American markup, but the vast majority of the people involved in their design and production are in China.

That has to change in a big way before any trade realignment is successful. Otherwise, it will simply raise prices for an already stressed American middle and working class.

[Rhiannon12866]

2. Important explanation, thank you!

And it doesn't help that the convicted felon has the use of additional tariffs completely backwards - it's the consumer who will be paying more.

[BrianTheEVGuy]

3. Exactly right

Tariff hikes with the current situation are basically an inflation booster. Bad policy from Trump, who’d have thought?!