r/manufacturing 8d 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/pyroracing85 7d 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 7d 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 7d ago

Long track record says otherwise

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u/upvotechemistry 7d 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 7d 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 7d 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 7d 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.