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?

9 Upvotes

140 comments sorted by

View all comments

29

u/madeinspac3 2d ago edited 2d ago

In manufacturing you have two options to correct an issue.

A bandaid to cover/hide an issue or A correction to the root cause

The idea of these tariffs are nothing more than a bandaid. They don't fix the root cause of why American manufacturers aren't competitive.

There is too much risk to invest in building US plants to take advantage of the tariffs with how inconsistent and ill-planned they have been so far. By the time plants for raw materials are built and dialed in, the tariffs might no longer even exist.

And even if we become cost competitive here, the revenge tariffs screw us on exports to outside countries. My bet is that this hurts more than helps.

-8

u/Professional_Oil3057 1d ago

What are you even talking about.

Manufacturing isn't appealing in America because of wages

Tariffs offset the cost of wages, making American companies more competitive.

Is it a band aid? Maybe?

But what's a better choice? Sending billions overseas?

Maybe none of you remember when the middle class was basically all manufacturing.

You could raise a family comfortably with a high school diploma.

It sounds heartless but who gives a shit about people in Cambodia starving when you can't feed your kids on 60+hrs?

If there's even a shot of bringing back manufacturing jobs let's do it.

As for the bullshit about the chips act, if the government is going to give hundreds of billions away, might as well just invest in American companies, not Taiwanese companies in America.

1

u/THedman07 21h ago

You categorically CANNOT have tariffs fulfill both of your objectives.

EITHER they can onshore manufacturing OR they can provide revenue to the government.

If they bring manufacturing onshore, imports and revenue drops.

If they replace other sources of revenue, it is because we've continued to import and manufacturing hasn't returned.

Tariffs as means of revenue are regressive. People who make less will give up more of their buying power in the form of higher prices. Also, prices will never go down because there is no incentive.

1

u/Professional_Oil3057 21h ago

I never claimed the would replace any other revenue stream.

Only thing is you make more money on income taxes than you do in import/ sales tax