alt Hacker NewsUm, by picking and choosing what goods need protection in the long term?
Like, we can't make more fish. Avocados take a few years to grow new trees. Steel mills don't just appear in Ohio.
The worst part is that, even if you believe Donny, he's so mercurial with these tariffs that no one is going to give you a loan to do anything about any of this. This Katy Perry doctrine [0] he's established is just poison to any sort of capital investment. You've got no idea if any of these tariffs will make it to Monday, let alone to the time it takes the mortgage on your t-shirt factory to be paid off. And then you've got a new administration in four years and no idea if they will keep that protection for you either. How are you going to plant a whole vineyard and get it profitable in 4 years when grape vines take 7 years to mature to fruit bearing?
There's no point to any of this, even if you believe him.
[0] 'Cause you're hot, then you're cold You're yes, then you're no You're in, then you're out You're up, then you're down You're wrong when it's right It's black, and it's white We fight, we break up We kiss, we make up
Replies
Exactly, tariffs may be a wise way to protect parts of your industry that need protection and investment. The Chinese for example have been using this tactic for decades. But you need to choose which sectors to invest in. The way Trump is doing is nothing more than an instant devaluation of the dollar purchasing power.
Overall I agree, but I'm not sure there's literally no point. American primary producers will likely benefit - people who own mines, oil wells, farms, etc., and some American manufacturers too as long as they source enough of their raw materials from within the US that the price hikes on resources from overseas don't bite them too much. Still an overall loss that will be borne by American consumers, but a small section of the population who are already wealthy will greatly benefit...