ReinyDays
Gold Member
Let's take a look at China importing into the US. Due to shipping costs, the savings at retail in the US is about 20%. And this is when there are no restrictions like there is today at the ports. Yes, 20%. What happens if you place a 25% tariff on the item? And you give a series of tax breaks to the us factories.
Is that 20% average or universal? ... school shoes for children cost less today than in 1970 ... without adjusting for inflation ... you going to take shoes off little children's feet? ...
Tariffs as a revenue source is fine, but what you're talking about is protective tariffs ... we slap a tariff on Chinese shoes so the shoes made in America become more competitive, NOT cheaper ... that's inflationary ... and the Chinese just adjust their exchange rate ... not inflationary there ... who wins? ... where's the Nash Equilibrium? ... ha ha new buzz word, doesn't mean anything ...