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Make your products in America or pay tariffs, Trump tells World Economic Forum (www.dawn.com)

submitted 1 week ago* (last edited 1 week ago) by concrete_baby@sh.itjust.works to c/world@lemmy.world

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US President Donald Trump told world business leaders on Thursday to manufacture in the United States or face tariffs, in his first major speech to global leaders since returning to the White House this week. ... “Come make your product in America and we will give you among the lowest taxes of any nation on earth,” Trump said today, speaking remotely to the World Economic Forum (WEF) in Davos, Switzerland.

“But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff,” he added.

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[+] Saleh@feddit.org -7 points 6 days ago (1 children)

In the right circumstances it is a powerful tool. The question is, whether these circumstances apply in the current US

Is what i said.

So to reduce costs of goods we will make cheap items from China cost more so USA made can compete at a higher price. why doesn’t the math work here? how does this result in a better economy?

Because then manufacturers in the US employ people in the US, who then have more money to consume in the US. That requires the government to also work towards good wages though. Also it allows for industries to grow so they can use economics of scale to drive down their production prices and then their consumer prices.

Again, for developing industries it can be crucial and is tried and tested. The question is whether that is what the US needs right now.

[–] horse_battery_staple@lemmy.world 6 points 6 days ago

You don't understand the current context then.

Look up Bethlehem Steel. That's the future of American production if Trump tries to use tarrifs to force local production.

If you're actually concerned about US production you'd lobby for subsidized labor to produce goods here. You'd lobby for stronger unions. If your lens is capitalism you need to outcompete your competition. And the current metric for that is labor costs and worker retention.

Look up FoxConn. See how we've outsourced suppressed wages and the model of the company store to China.