Not just people, the economy will end up paying the price.
Tariffs have horrible second order effects.
Every companies outputs is some other companies inputs.
American companies end up locked out of more affordable vehicles as inputs. That cost then gets baked into its output, which is some other company’s input. Then just keep following that chain.
The best broad blanket tariffs can hope to do is trade long term competitiveness for some short term price increase.
Americans will wonder why other nations eat our lunch in the coming decades. Well that foreign company could buy the cheaper machine to produce the widget, their raw materials cost less to deliver because the transit company that ships it in charges a better rate because they have lower vehicle overhead. Since they have 2 dozen suppliers for their components both foreign and domestic they are forced to compete on quality and price.
American companies will become even more bloated and inefficient
Not just people, the economy will end up paying the price.
Tariffs have horrible second order effects.
Every companies outputs is some other companies inputs.
American companies end up locked out of more affordable vehicles as inputs. That cost then gets baked into its output, which is some other company’s input. Then just keep following that chain.
The best broad blanket tariffs can hope to do is trade long term competitiveness for some short term price increase.
Americans will wonder why other nations eat our lunch in the coming decades. Well that foreign company could buy the cheaper machine to produce the widget, their raw materials cost less to deliver because the transit company that ships it in charges a better rate because they have lower vehicle overhead. Since they have 2 dozen suppliers for their components both foreign and domestic they are forced to compete on quality and price.
American companies will become even more bloated and inefficient