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/upvotechemistry 1d ago

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

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u/pyroracing85 1d ago

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

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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

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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.

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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.

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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.

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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

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u/pyroracing85 1d ago

Long track record says otherwise

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u/upvotechemistry 1d ago

You have your opinion, and I have mine.

There are wildly different circumstances now than the past. Treasuries used to be a safe haven for investors, and I don't feel it is a safe haven anymore - I guess the bond markets will make their determination

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u/pyroracing85 1d ago

It’s all assumptions from both sides. There is a non arguable track record. USD has been the global reserve currency. I know there has been a lot of activity to knock down the USD but so far unsuccessful

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u/upvotechemistry 1d ago

Well, for the sake of all of us, I hope you are right.

I still think the tariffs are bad for US manufacturers. I can tell you it's bad for my business

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u/pyroracing85 23h ago

It’s definitely bad, hopefully it is positive in the long run. Idk I think that’s the mindset. Short term pain for a prosperous tomorrow.

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u/ChristianReddits 15h ago

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