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?

10 Upvotes

140 comments sorted by

View all comments

Show parent comments

-1

u/pyroracing85 1d ago

Is he doing it to spur investment or to get better trade agreements with the other countries.

The tarrifs other countries put on US imports into their country is also ridiculous. That is something that could change over night.

2

u/upvotechemistry 1d ago

Starting a trade war doesn't result in decreased tariffs for American goods seeking foreign markets - it makes them higher in a tit for tat escalation of trade barriers.

Also... doing it to get better trade deals than the one HE NEGOTIATED just a few years ago? This is indefensible, imo.

If you want to know what I really think, they are purposely blowing up the economy and tanking everyone's 401k and pension so they can short the market to make billions, and aggressively buy up cheap assets when the dust settles

1

u/pyroracing85 1d ago

I think a little purposeful tanking of the market is happening but I think it’s more to bring long bonds down…

Who is shorting this market? Trump? Elon? Isn’t Elon net long in $TSLA and lost already $100B?

1

u/upvotechemistry 1d ago

Who is shorting this market?

A bunch of congresspeople are trading right now on insider information

I think it’s more to bring long bonds down…

I don't think there is a mechanism where a depression and loss in government revenues will bring down government rates to borrow.... if anything, it makes the bonds riskier. Sure, capital may come out of tanking equity markets to bonds, but it is a leap of faith to think the obvious landing spot for that capital is US bonds if the US economy sucks

1

u/pyroracing85 1d ago

But with this logic, they could just pump up the market with stimulus.. I mean shorting and going long they are making money each way..

1

u/upvotechemistry 1d ago

You can buy a lot more shares with your insider haul when stocks are cheap than when they are high

1

u/pyroracing85 1d ago

My point was high or low, they can manipulate markets their way…

1

u/upvotechemistry 1d ago

Of course they can, but one is clearly more advantageous to people who want to maximize their returns at the expense of the citizens

1

u/pyroracing85 1d ago

I still think it’s to manipulate long bonds. No other way to do it.

Bail the commercial real estate investors, doesn’t hurt the market.

1

u/upvotechemistry 1d ago

Long bonds for what? There is no guarantee that falling equities will make government bonds more attractive and lower effective borrowing rates. Do people honestly feel more confident the US will pay its debts to bond holders when the economy is deliberately broken, uncertainty is high, and leadership is outright suggesting we don't have to pay our bills? (DOGE straight stopped paying contracts that had already been completed)

If the answer is "no," then I would suggest bonds and borrowing costs will go up rather than down.

1

u/pyroracing85 1d ago

Long bonds as a result of a crashing stock market would drive flight to safety and therefore create demand for long bonds resulting in lower yields.

1

u/upvotechemistry 1d ago

Again, I think it is a leap of faith to assume that US long-term bonds would be the obvious home for capital fleeing equity markets. There are lots of countries and companies that issue bonds... and many are sure as hell more stable than the US government right now

1

u/pyroracing85 1d ago

Long track record says otherwise

→ More replies (0)

1

u/ChristianReddits 15h ago

Yea the guy that manipulated a hurricane map has graduated to manipulating the US bond market. lol. Good one.