Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
The USA also needs to reverse the tax incentives that reward manufacturers for 'off-shoring' production. If it is our goal to return manufacturing to the USA we must change all of the perverse incentives we set up at the behest of neo-liberal looters. China needs access to the US market more than we need goods manufactured in China - IF we create domestic sources for that manufacturing. That requires actual planning - currently an ideological taboo.


"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Sep 18th, 2018 at 06:44:16 PM EST
[ Parent ]
It seems to be even worse: some "finished goods" like TV or other electronic devices sold directly to the consumers, are exempted from the tariffs, but the components to assemble such devices are not. As a result, companies doing their final assembly in US plants , like Vizio TV sets, are disadvantaged:

How Trump's tariffs will hurt US tech companies - The Verge

This dynamic is familiar to economists, who see intermediate goods like circuit boards as fundamentally different from consumer goods like laptops. "It is well-known that tariffs on intermediate goods will harm producers of the final goods," says Eric Bond, who studies international trade at Vanderbilt University. "Historically, protectionist countries have taken this into account by putting higher tariffs on producers of final goods to offset the impact of tariffs on intermediate products." So far, the Trump tariffs have ignored that logic, exempting major products to focus on minerals, metals, and unassembled components.
by Bernard on Wed Sep 19th, 2018 at 02:42:49 PM EST
[ Parent ]

Display:

Top Diaries

Occasional Series