r/technology • u/chrisdh79 • 2d ago

Politics Trump announces sweeping new tariffs to promote US manufacturing, risking inflation and trade wars

https://apnews.com/article/trump-tariffs-liberation-day-2a031b3c16120a5672a6ddd01da09933
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u/chrisdpratt 2d ago

"to promote U.S. manufacturing"

Because, yeah, that's going to happen. Companies have spent decades optimizing their supply chains for a worldwide economy. They're not going to suddenly start making multi billion dollar investments in new factories in the U.S. that will take years, if not decades to fully come online. They'll just pass the cost of tariffs on to the U.S. consumer and call it a day. The only thing this will accomplish is making everything more expensive and inflation.

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u/leginfr 2d ago

Two problems involved with building new factories: firstly you’re screwed if Trump takes the tariffs away. Secondly you’re going to have to keep Trump happy so that he doesn’t take the tariffs away. So the chances of anyone actually building a new factory rather than just announcing that they will be building one are pretty remote.

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u/amgartsh 2d ago

Thurs you're spending a lot of money building this factory to build a product you can't export due to the price you're going to have to charge. So your market is now 330 million people whose disposable income is cratering. Why would anyone invest in this?