Quote:
Originally Posted by S14_Kouki
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The main thing that needs to be clarified is to whom the tariff is applied to.
Are the companies that are taxes:
A) the ones owned by companies located in China?
(Wanli, etc)
OR
B) this also entail companies that might be owned by a non-Chinese country that have manufacturing facilities in China?
(pretty much everyone, Falken, Dunlop, Bridgestone, Kumho, etc)
IF:
A) would end up pissing off China and nothing more (in the short run)
IF:
B) effects of A), plus
raising the costs of pretty much all respectable tire companies,
hurting the tire industry as a whole (US included),
raising the cost for all consumers.
What the tariff will fail to do either way is prevent outsourcing of jobs.
Manufacturing will just move from China to the next closest location.
I'd wager that's NOT going to be the US.
Heck, I don't even know why ppl bother with large scale manufacturing in the US.
Between taxes, legal liabilities, cost of insurance, cost of overhead (not even counting wages), etc, it's just not a realistic option.
There's a difference between running a business & a charity.
What the U.S. SHOULD tariff, are the countries that tariff us.
If Japan tariffs our cars by 20%, we return the favor likewise to a comparable commdity.
If Korea tariffs our rice 100%, we do likewise.
If China imposes a 50% tariff on our tires, then this would be the right move.
We pressure them into a situation where they have to buy more from us.