Let’s say Mr. Smith owns a widget company that employs 100 people and makes a quality widget that sells for $10. Widgets start appearing from Asia that sell for $5. Had a $5 tariff appeared, Mr. Smith could have continued producing widgets in America. No tariff appeared, and Mr. Smith was forced to move his company to Asia. This scenario resulted in entire industries leaving the United States. Electronics, appliances and clothing were no longer manufactured in the United States. For the consumer, this was a win (think a 60-inch TV for $500). However, for the country it was a significant loss of manufacturing jobs and rising U.S. debt as dollars went overseas. Now Trump wants to institute tariffs to try to bring these jobs back home. So let’s say he puts a $5 tariff on widgets so Mr. Smith can bring his company back to the United States. The problem is it will take years for that to occur, and the bigger problem is that the American consumer is now used to paying $5 for a widget (and $500 for their 60-inch TV). Widgets will once again be $10, and a large number of consumer goods will see significant price increases.
This will create a very unhappy electorate in the next election leaving Democrats smiling and Republicans worried. The time for tariffs was long ago before American industry was offshored. That ship has sailed.
In 2016 the same administration promised to rejuvenate coal mining by removing regulations and going back to burning coal. Coal mining jobs didn't disappear because of regulations, they disappeared because other forms of energy were much cheaper. The same is happening to the fossil fuel industry as well. At one point they just can't compete anymore or people aren't willing to pay the price.
Manufacturing jobs went where manufacturing became cheaper and where companies could find skilled labor.
Automobile companies haven't left the US, they just moved from centers in the North to the American South.. Car manufacturing happens in South Carolina, Tennessee, and Alabama rather than in Michigan these days. This couldn't have been prevented with tariffs, it could have been prevented by regulating what these states gave in tax incentives and subsidies.
And the manufacturing jobs that left for China can't come back because the US is lacking the necessary skilled labor willing to work for cheap. Actually if manufacturing came back to the US it would be done by robots.
The jobs the US is currently losing are well paid, highly educated technology jobs. The tech industry keeps laying off claiming they are using AI to their advantage. In reality those jobs are really moving to India. They just don't tell you that.
Again India and China have a well trained workforce, while the US - sabotaging its own education system - can't compete. Even today the Silicon Valley workforce is dominated by people born and trained in India or China. Many companies were started by hungry and ambitious immigrants.
History is repeating itself and Trump if focusing on the wrong industry. If immigrants aren't welcome, if visa programs are stopped, if Education and Research are under siege, the companies of the future will be started somewhere else.
easygerd - you may be partially right but you are not correct when quoting automobile manufacturing. In 1978 there almost 20 million autoworkers. In 2024, there are only 4.5 million. Some of the decreases resulted from robotics but most from imports. Our tech giants refuse to pay the salaries that our skilled workers should be getting but they found cheaper, but not better, labor sources elsewhere. Skilled immigrants are still welcome and are getting their visas by the thousands. As we are fully stocked on unskilled labor who are roaming the streets and created mayhem, we need to keep them out. However, AI will take a toll on all work opportunities in the world. Blaming that transition on the current administration is yet another line out of the Democrat playbook.
The current administration is blocking international students and international researchers - the next wave of skilled labor this country needs and is going after all kinds of educational facilities of domestic students. Not to improve education - only to fight culture wars. Other countries are sending invites to these students and scientists.
That btw. is how Germany lost its huge lead in science and research it had one century ago to America. Germany drove out its scientists and the UK and USA welcomed them. An Englishman once said "The reason we won the war was that our German scientists were better [motivated] than their German scientists".
American car manufacturer had all chances to compete with Japanese and European automakers but usually failed because of their lack of quality. And "lack of quality" is just another version of "lack of skilled labor". American Car manufacturers weren't just attacked on the home front though, they went out and produced in other countries as well. They were also on the attack so to speak.
But even when they were located in other European countries and using their skilled labor force, Ford or GM manufacturing facilities still created products lacking in quality that had a harder time competing. Now it becomes a leadership problem. And Ford or GM leadership back then were certainly known for their arrogance.
The only cars Americans produce these days are the extreme version of pickup trucks One reason is the famous "Chicken Tax" with Europe which led to the protection of this particular vehicle that serves little to no purpose. Great for gardeners or contractors - but for small businesses and families a wagon, van or minivan has so many more advantages. But America stopped competing on that front despite inventing these kinds of vehicles.
So while the Europeans and the Asians brands have low-mileage, spiffy, nifty, nimble, fun, and cheap cars you can park in any spot - we here are stuck with oversized, high-mileage, and now even super- expensive trucks and SUVs, because the Marlboro man sells it to us as "freedom on wheels".
easygerd - you actually nailed it in many aspects. While I am generally in support of MAGA, it also means that our manufacturing base needs to hasten our quality and quality assurance institutional methods. Greed and Wall street have taken hold of our condescending, lazy mentality with an unfounded false pride in our production capabilities. This is not limited to the US. The Europeans are dealing with similar issues. The answer is to start competitive and quality production in our US that will eventually remove the needs for tariffs. The question is whether Wall Street, with its short term profit motives, will allow that to happen. Please note that Trump is on thin ice with Wall Street.
... and yet the current administrations keeps giving trillions of dollars in subsidies to greed and Wall Street with what Musk calls a "massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination."
He doesn't buy the tariffs as a means to safe American manufacturing jobs, he knows it's just a more populist way to NOT say "Tax Increase" while handing the money to greed and Wall St through major "Tax Cuts". All while increasing the deficit of course and the interest we have to pay. He knows now his DOGE was just a way to divert media attention and pretend fiscal responsibility - something the Republicans haven't really owned since Ronald Reagan.
There is basically no difference between Democrats and Republicans these days. They are basically doing the same things behind the scenes, while pretending to fight fake "culture wars" about "equity" or "sustainability" or "gender fairness" in the front.
And MAGA would be way more credible if they didn't hate on one of the biggest American manufacturing stories of the last 15 years: Tesla including its solar company. It is mostly populist Republican politicians fighting against renewables and EVs and California supporting both.
Trumpp didn't even understand who pays the tariffs, so it had to be explained to him that WE are. No big surprise, though, as poorly educated as he is.
Most Americans are not aware that our first President, Washington, imposed tariffs on British goods to protect our domestic industries. Upon the end of WWII the US loosened tariffs on the Europeans to assist in their economic recovery. For some reason, and not until Trump, those favorable tariffs for the Europeans were left in place. Trump claimed that they were 'ripping us off' but we let it happen. By allowing China to join the WTO, we brought in a Trojan Horse, again our own doing. Our own docile policies regarding international trade have now been coming home to roost and we finally have president who is taking action. President Washington would be proud of him.
Thanks for your letter, Mr. Howard. Now let’s say the widgets in question are medicines or PPEs or other essential items, how will the electorate feel when these items are in short supply or are limited by exporting countries? Because the US is completely dependent upon them. BTW, polling shows Republicans, and America, is smiling because they like the direction the country is taking under Trump. If you watch or read the news, it doesn’t sound at all like Dems have a plan. Speaking of a plan, what’s your solution if not tariffs? We’ve seen the alternative and maybe that’s why the ship is returning home?
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(8) comments
In 2016 the same administration promised to rejuvenate coal mining by removing regulations and going back to burning coal. Coal mining jobs didn't disappear because of regulations, they disappeared because other forms of energy were much cheaper. The same is happening to the fossil fuel industry as well. At one point they just can't compete anymore or people aren't willing to pay the price.
Manufacturing jobs went where manufacturing became cheaper and where companies could find skilled labor.
Automobile companies haven't left the US, they just moved from centers in the North to the American South.. Car manufacturing happens in South Carolina, Tennessee, and Alabama rather than in Michigan these days. This couldn't have been prevented with tariffs, it could have been prevented by regulating what these states gave in tax incentives and subsidies.
And the manufacturing jobs that left for China can't come back because the US is lacking the necessary skilled labor willing to work for cheap. Actually if manufacturing came back to the US it would be done by robots.
The jobs the US is currently losing are well paid, highly educated technology jobs. The tech industry keeps laying off claiming they are using AI to their advantage. In reality those jobs are really moving to India. They just don't tell you that.
Again India and China have a well trained workforce, while the US - sabotaging its own education system - can't compete. Even today the Silicon Valley workforce is dominated by people born and trained in India or China. Many companies were started by hungry and ambitious immigrants.
History is repeating itself and Trump if focusing on the wrong industry. If immigrants aren't welcome, if visa programs are stopped, if Education and Research are under siege, the companies of the future will be started somewhere else.
easygerd - you may be partially right but you are not correct when quoting automobile manufacturing. In 1978 there almost 20 million autoworkers. In 2024, there are only 4.5 million. Some of the decreases resulted from robotics but most from imports. Our tech giants refuse to pay the salaries that our skilled workers should be getting but they found cheaper, but not better, labor sources elsewhere. Skilled immigrants are still welcome and are getting their visas by the thousands. As we are fully stocked on unskilled labor who are roaming the streets and created mayhem, we need to keep them out. However, AI will take a toll on all work opportunities in the world. Blaming that transition on the current administration is yet another line out of the Democrat playbook.
The current administration is blocking international students and international researchers - the next wave of skilled labor this country needs and is going after all kinds of educational facilities of domestic students. Not to improve education - only to fight culture wars. Other countries are sending invites to these students and scientists.
That btw. is how Germany lost its huge lead in science and research it had one century ago to America. Germany drove out its scientists and the UK and USA welcomed them. An Englishman once said "The reason we won the war was that our German scientists were better [motivated] than their German scientists".
American car manufacturer had all chances to compete with Japanese and European automakers but usually failed because of their lack of quality. And "lack of quality" is just another version of "lack of skilled labor". American Car manufacturers weren't just attacked on the home front though, they went out and produced in other countries as well. They were also on the attack so to speak.
But even when they were located in other European countries and using their skilled labor force, Ford or GM manufacturing facilities still created products lacking in quality that had a harder time competing. Now it becomes a leadership problem. And Ford or GM leadership back then were certainly known for their arrogance.
The only cars Americans produce these days are the extreme version of pickup trucks One reason is the famous "Chicken Tax" with Europe which led to the protection of this particular vehicle that serves little to no purpose. Great for gardeners or contractors - but for small businesses and families a wagon, van or minivan has so many more advantages. But America stopped competing on that front despite inventing these kinds of vehicles.
So while the Europeans and the Asians brands have low-mileage, spiffy, nifty, nimble, fun, and cheap cars you can park in any spot - we here are stuck with oversized, high-mileage, and now even super- expensive trucks and SUVs, because the Marlboro man sells it to us as "freedom on wheels".
easygerd - you actually nailed it in many aspects. While I am generally in support of MAGA, it also means that our manufacturing base needs to hasten our quality and quality assurance institutional methods. Greed and Wall street have taken hold of our condescending, lazy mentality with an unfounded false pride in our production capabilities. This is not limited to the US. The Europeans are dealing with similar issues. The answer is to start competitive and quality production in our US that will eventually remove the needs for tariffs. The question is whether Wall Street, with its short term profit motives, will allow that to happen. Please note that Trump is on thin ice with Wall Street.
... and yet the current administrations keeps giving trillions of dollars in subsidies to greed and Wall Street with what Musk calls a "massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination."
He doesn't buy the tariffs as a means to safe American manufacturing jobs, he knows it's just a more populist way to NOT say "Tax Increase" while handing the money to greed and Wall St through major "Tax Cuts". All while increasing the deficit of course and the interest we have to pay. He knows now his DOGE was just a way to divert media attention and pretend fiscal responsibility - something the Republicans haven't really owned since Ronald Reagan.
There is basically no difference between Democrats and Republicans these days. They are basically doing the same things behind the scenes, while pretending to fight fake "culture wars" about "equity" or "sustainability" or "gender fairness" in the front.
And MAGA would be way more credible if they didn't hate on one of the biggest American manufacturing stories of the last 15 years: Tesla including its solar company. It is mostly populist Republican politicians fighting against renewables and EVs and California supporting both.
Trumpp didn't even understand who pays the tariffs, so it had to be explained to him that WE are. No big surprise, though, as poorly educated as he is.
Most Americans are not aware that our first President, Washington, imposed tariffs on British goods to protect our domestic industries. Upon the end of WWII the US loosened tariffs on the Europeans to assist in their economic recovery. For some reason, and not until Trump, those favorable tariffs for the Europeans were left in place. Trump claimed that they were 'ripping us off' but we let it happen. By allowing China to join the WTO, we brought in a Trojan Horse, again our own doing. Our own docile policies regarding international trade have now been coming home to roost and we finally have president who is taking action. President Washington would be proud of him.
Thanks for your letter, Mr. Howard. Now let’s say the widgets in question are medicines or PPEs or other essential items, how will the electorate feel when these items are in short supply or are limited by exporting countries? Because the US is completely dependent upon them. BTW, polling shows Republicans, and America, is smiling because they like the direction the country is taking under Trump. If you watch or read the news, it doesn’t sound at all like Dems have a plan. Speaking of a plan, what’s your solution if not tariffs? We’ve seen the alternative and maybe that’s why the ship is returning home?
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.