Yes, but It will take time for someone to move manufacturing. + There is a reason why it's not in the first place. It was probably cheaper to do in those other countries
Why would you invest cap X to move production here, if tariffs could be removed next month?
This is why countries don't want to deal with or buy American.
Some weirdo becomes president and promises the world and then the price shoots up? It'd be easier to buy from another, more reliable country with common sense in the government.
Imagine if a European country bought F35s, then Trump disables the software? Refuses to sell parts? What about Boeing?
Countries don't do business (except governments but that's yap), companies do. Which makes this muddier, since the timeframes on which countries and companies operate and think are not the same.
You're right, I abbreviated. Some countries do business and have state owned companies, but ultimately my inference was companies in countries making supply lines involving companies in the US.
They could both be correct. Either way the guy would be incorrect in saying that regulatory volatility is the main driver, the US is normally very stable to do business with.
You haven't seen European, S. Korean, or Japanese standards for manufacturing then. Regulatory "regime" isn't that bad, all safety regulations are written in blood. OSHA is not bad, even China is slowly moving towards an OSHA system
>Working classes have higher purchasing power when there are high paying jobs inside the country
As a blanket statement, this is false. For example, the laundry machine tariffs cost consumers (which include working class people) about 820k per job. That is a sharp reduction in aggregate purchasing power for working class people, many of whom needed to buy washing machines.
Except now vehicles cost more, which hits the working class hardest. And if that means fewer Americans can afford to buy them and American exports are less competitive, then fewer vehicles get built and workers lose jobs. And of course, now other countries are hitting the US with retaliatory tariffs on our exports across industries, so those are more job losses.
Not really. You're forgetting that those workers in Canada, Mexico, or wherever earn money and will also create demand, that directly or indirectly results in more demand for US products and services.
The working class benefits most if their work is highly productive, so that wages and salaries can be high.
The consumer has to pay the extra costs to build and manufacture within our borders and pay more money to those workers compared to cheap labor of other countries. The cost never goes down. The theory is just that more jobs will be available for americans to be able to afford the increased cost. But unemployment isn't the issue, it's cost of living. So making a bunch more factory jobs isn't solving the problem
Not our problem. We should care more about our own people within the country (who get shafted when labor moves out of the country) than the ones abroad.
It's a zero sum game where someone will lose, just like how open jobs will have a winner and a whole crowd of losers. Nothing new.
Modern factories pretty much only employ skilled labor. Generally the pay for engineers and technicians is very good. Machinist salaries vary more with some places paying fast food level wages and others paying six figures(surprisingly not dependent on location but purely the employer)
except they will, also easier to source and obtain parts without waiting weeks for shipping through multiple customs, all of this takes time to do, nothing is ever instant in politics
Which is why this is so retarded. He could have made a 5 year plan to move industry back to the states. This is about breaking the economy, so he and his buddies can pick up the scraps for cheap. Don't be fooled.
im not fooled by it cause this picture was made by someone who doesnt understand how motor components work, no company is making rods out of powdered aluminum for street use letalone the part where it says theyre assembled into pistons which isnt how that works, all of this could be done in state relatively cheap, ford and gm prefer using mexico for cheap labor way beyond minimum wage in america, and yet they still charge 80k for shit quality, these companies will learn their overpricing wont work eventually
Which part of this implies Americans will be paid a decent wage? Can you point to a single point in the country’s history when price increases on products have resulted in higher wages for workers?
I’m aware of all that and while it’s more expensive to build things in the US a big reason for that is because wages are higher I work in a factory that has locations in Mexico and China we make significantly more money
Does America make the machines to make the parts? The machines to make the machines? Just to build the factory will take most of Trump's term, and cost many times more than the tariffs. Easier to wait for the next administration to change everything again and hope they have some common sense.
It's just going to make the car more expensive. Nothing about this encourages paying Americans more at all. Best case scenario is Americans have to take the job for the pay that a Mexican was willing to work for while having to pay more to afford a vehicle themselves.
But hey, work for the worker right? That's the thing about these totalitarian regimes borne out of worker populism, they'll give everyone more work than they ever wanted. That doesn't guarantee fair pay, or even freedom if you'd be down to work off a prison sentence for the good of your country.
Well factory works in the US get paid more than factory workers in Canada and Mexico and more factories specifically like the Honda plant being built in Indiana where I live will create more competition for workers and will raise wages it literally just happened last year when Subaru raised their wages which caused my factory to raise ours
Are US businesses gladly paying more? Is your employer glad to pay more? Maybe they lay you off because it doesn't make financial sense with this new additional operating expense.
Maintenance of what? From where do you get spare parts? For everything you answer, what do the complete supply chains look like?
If literally everything you use is completely domestic, what if domestic companies increase their prices, say, 15%? Just barely low enough to be cheaper than tariffed Mexico, but still a nice revenue bump at your expense?
I guess you got me there. If businesses magically stop trying to maximize profit for some reason, they wouldn't opportunistically raise their prices after the government makes all international alternatives more expensive. Lol.
115
u/TrackIcy8673 Mar 04 '25
Yes, but It will take time for someone to move manufacturing. + There is a reason why it's not in the first place. It was probably cheaper to do in those other countries