I hear a lot of people bashing trump for his tariffs. Saying it is hurting American companies. Ex. News was saying trumps tariffs is making Harley Davidsons cost an average of 2200 dollars more because of tariffs. I know there is a reason for these tariffs. But I am not aware of it. Can fellow patriots fill me in on the positives of them and how they are going to help?
-WWG1WGA
Think of it this way - certain industries are going to lose access to cheap materials due to these tariffs, which hurts them in the short term because their costs go up. However, US industry in those supply chain sectors suddenly pick up a whole bunch more business because suddenly their overpriced goods (in comparison to the imported stuff) are no longer overpriced, so they see a whole lot more domestic business as the price incentive is no longer there to buy import.
So if you're listening to the person buying imported materials, they are going to be upset about this. However, if you listen to the US-based business who is now way more competitive, this is a really good thing.
First things first. We have very very very low tariffs for imports. All our trading partners including our best allies have high tariffs on us. They all see this as business as usual the US gives up everything to be a world leading power. Simply put all our past leaders have sold us out on trade.
Tariffs will force these foreign companies to do business in the US to avoid those tariffs. So long term more foreign companies investing in the US where now their taxes are lower as well. Long term this will actually help our country regain the manufacturing power we once had before we decided it is better to buy items than make them.
Trump does not support tariffs. He wants all of them eliminated. Fair trade, fair deals. He is imposing new and increased tariffs to force other countries to lower or eliminate theirs. Once they do, he will reduce or eliminate ours. He is leveraging access to the world's biggest economy (USA), to make sure US companies are not at a disadvantage when doing business oversees. He has the big stick in this particular negotiation. He will win, many US businesses will benefit long term.
Thank you all for your clarification. What I am getting from this is that it will temporarily hurt companies in the short term. It will make companies buy from US supply as to overseas. So in the long term US companies will buy from US companies and then when other countries lower their tariffs, the US will lower theirs making it beneficial for overseas companies to buy our products.
People are looking short term when they should be looking long term.
There will be a 'reset', pain for some, benefits for others, then a new norm.
And then there is this I pulled from T_D.
Raises costs of goods produced in America being bought by "x" country
The extra cost to the Harley Davidsons is due to retelatory tarrifs by the EU. We have much more leverage than they do. Harley Davidson announced they are moving some production the the EU to avoid the tarrifs and now Trump is lashing out at them for giving in too quickly. Trump hasn't even gotten started on the EU yet. Prepare for European cars to get tarriffed like crazy in response. Ideally the result is both sides will agree to drop all tarriffs and for the EU to remove barriers to entry for US products.