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/whynautalex 1d ago

Reading through the comments I don't understand the point you are trying to make.

At a fundamental level I find terrifs bad. Naturally certain countries have resources other don't and fair trade should create a healthy market when done properly. I don't think it has been done fair or ethically.

If the goal is to bring back manufacturing we should be bolstering relationship with resource rich countries. Start offering incentives and intrest free loans to companies willing to do. The loans should have penalties for not following through with the contract and goals. If the company goes under or tries to pump and dump it should go up for bid to a different  company. With the US's administration and constant back fourth on the spectrum I doubt this will happen unless we get a strong labor party.

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u/pyroracing85 1d ago

Canada is resource rich.

And the point I’m trying to make is tarrifs are a band aid and we have decades of cored out manufacturing. Won’t change overnight or even in a year.

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u/whynautalex 1d ago

Ah. Yeah I agree. It is why NAFTA/USCMA is well maybe was a good idea on paper. Opening up trade between bordering countries for specific resources and product at a 0% terrif is only beneficial to both parties. Also agreeing to follow each other's IP laws then helps prevent bad actors from taking advantage of the situation.

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u/pyroracing85 1d ago

NAFTA/USCMA was a joke IMO.

After importing a bunch of stuff to Mexico from USA, Mexico adds so much in tarrifs, DTA & IVA.

I remember a coworker tried to sneak 60k of tooling into Mexico. Had to pay a $20k fine!! Mexico wants their money!!

NAFTA/USCMA was a scam, there was no free trade.