Tariffs are not a new concept and have been used historically to build economies. Top China analysts in the Obama administration credited its economic rise to protective tariffs and high barriers to entry for any foreign companies to sell in country.
I’m probably a bit older than most lemmy users and remember when tariffs were a major talking point for democrats as a positive thing to protect American jobs. Hell, growing up in the Midwest, all my dad and his buddies that worked union jobs had to vote democrat because of their aggressive tariff policy to protect their jobs.
So what if trump is right about tariffs and it reinvigorates the American economy? Will people find another reason to credit the success to? Will it be the end of blue collar voting for the democrats?
Edit: Markets are rebounding hard, I bought low, glad Lemmy is full of pseudo intellectual economic morons. How is Lemmy going to cope now?
How can he be right when it’s pretty much a wrong decision? Tariff isn’t new, country does that to protect or nurturing the local industry so it won’t get wrecked by bigger fish coming into the local market.
But there is cost to that, because once the bigger brand established locally and people relying on them, and local brand has since been demolished, tariffs gonna hurt so many people without alternatives to consider. It take years for the good effect of tariff to establish. What frump did is put a sweeping one with the 10% minimum for all country EXCEPT russia, and some as high as 34%. This have serious consequences outside of stock market, the so called “blue collar” he’s trying to protect is the one gonna hurt the most, and it gonna take years if not decade(s) for such tariff to take effect.
What china did cannot be replicated beyond their land. They can survive on their own for years if they close off their port today. The whole thing by china is planned, drump and the depublicant can’t even figure out the mathematical equation of tariff. What they did is turning friend into enemy and pretend it’s a win.