It also opens the door to competition. Right now in many things we can't compete against places like e.g. China because everything is dramatically more affordable there, including regulatory compliance. Tariff's change this and make it such that domestic producers can produce things at a cost comparable, and ideally less, than other countries.
These tariffs should have been immediately deployed following changes in labor, environmental, and other laws anyhow - because otherwise all we do is just end up defacto outsourcing pollution and other externalities to the lowest foreign bidder, where the only person who really loses is the American worker.
But price elasticity isn't infinite. A large part of the middle class would be priced out of most modern amenities if these would be produced domestically. Import substitution is one of these things that sounds nice in theory but tend to be highly damaging in practice.
This isn't necessarily true. A big factor when production comes back home is that so do the jobs that come along with it and that has a huge ripple effect on the economy that's difficult to evaluate, other than it being a very good thing.
> A large part of the middle class would be priced out of most modern amenities if these would be produced domestically.
Who said everybody would get to keep buying as much cheaply made foreign crap as before? From an environmental perspective that's arguably a win as well. Reducing both pollution from construction and transport.
That's a measurable qualify of life decrease as well for many people. Some things they just won't be able to buy anymore. Things they may require, but you claim its ok to go without because it helps the environment. Sounds dystopian.
Personally, I think a better alternative to tariffs would be to require make regulatory requirements for labor, environmental concerns, etc. for the production of any goods sold in the US. Or maybe have tariffs, but companies can opt in to complying with regulations in order to avoid the tariffs.
The problem is that laws need to have precision, and that precision can be sidestepped. For the obvious example - most of all chocolate in America still uses labor involving not only child labor but defacto child slavery. [1] So they say some kind words and make an effort to use supplies who aren't using child labor. But all that involves is them asking the supplier 'Hey, you're not using child labor are you. No? Okay, great.' Of course they are and e.g. Nestle knows they are, but so long as they go through some superficial steps to give plausible deniability for both parties, they can then be 'my gosh, we had no idea.' This, btw, is the exact same way that NGO corruption works - shell companies that offer plausible deniability.
There's no real room to evade tariffs outside of misclassifying or misrepresenting imports, which is a straight forward criminal felony.
> There's no real room to evade tariffs outside of misclassifying or misrepresenting imports
There’s an entire field of “tariff engineering” that’s experienced an understandable boom in demand in the last 12 months. That’s technically about avoiding or reducing tariffs rather than evading them, but tomato/tomato…
> opens the door to competition. Tariff's change this and make it such that domestic producers can produce things at a cost comparable, and ideally less, than other countries.
Haha, Nope. It's more like closing a door. An actual economist says this:
"If you look at page 1 of the tariff handbook, it says: Don't tariff inputs. It's the simplest way to make it harder—more expensive—for Americans to do business. Any factory around the world can get the steel, copper, and aluminum it needs without paying a 50% upcharge, except an American factory. Think about what that will do to American competitiveness."
These tariffs should have been immediately deployed following changes in labor, environmental, and other laws anyhow - because otherwise all we do is just end up defacto outsourcing pollution and other externalities to the lowest foreign bidder, where the only person who really loses is the American worker.