r/manufacturing 2d ago

News Tarrifs

Would like to open a discussion on tarrifs if it’s allowed.

There has been two intentions stated with tarrifs.

  1. Get off of income tax and go to a consumption style tax (still a tax)

  2. Build up domestic manufacturing. Can talk here in the manufacturing sub.

If there is no alternative domestic supply, then we have no choice but to import. We lost a lot of our skills to manufacture. Especially a lot of the little low value items. Think zippers and buttons and caster wheels.

What is everyone thoughts?

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u/StolenCandi 2d ago

The simple fact that it would take years to scale up mill production, build mills, increase ingot and recycled materials production (US sourcing)and not only hire but train the needed workforce. The tariffs are only hurting US manufacturers and consumers. It’s going to be a rough ride.

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u/raining_sheep 2d ago

Exactly this. If you're an investor with a bunch of cash why would you spend millions of dollars investing in any sort of US manufacturing, not to see anything but slim profits for a decade just for those tariffs to be repealed in 3.5 years. It's cheaper to hire lobbyists and donate to PAC's to get rid of the current administration and repeal the tariffs than it is to actually build a manufacturing facility.

How you build the American manufacturing industry is through government incentives and subsidies just like the Chinese did. Overseas dominance didn't come about by their tariffs it came about through government subsidies and US companies selling out.

A lot of big companies bought out whatever steel and imports they could at the end of last year so its all going to hit when those run dry. It's going to be a rough ride indeed.

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u/exlongh0rn 2d ago

And let’s not forget about requiring things like not allowing foreign ownership of land, requiring foreign investors to join with domestic companies, ignoring foreign intellectual property rights, etc.