I’m going to make this extremely easy to understand, but first I’m going to throw out the Trump argument.
China is taking our jobs with their lower cost goods and it’s killing America and it’s not fair.
Well, if China didn’t do it, Mexico would do it, or India or Canada or whomever else. China is GOOD for America and you can see it rather easily by simply going to a mall.
Go to your local mall and look at two things. First, look at the cars in the parking lot. What make are they? I would bet you a majority of them come from Asia. Toyota mostly. Why are they the most owned car in the parking lot? Because they are affordable. They cost less. Go price similar cars and you’ll see the Toyota is literally thousands of dollars cheaper than a comparable Ford. By putting Tariffs on everything, this is going to raise car prices.
Now look at cell phones. I would argue that the less affluent people have Samsung’s toy of a phone running Android. Why is this? Because Samsung literally gives hundreds of thousands of these phones away for free (Because they are stealing your information off that phone and selling it, but Americans are kinda dumb and don’t realize that’s where their money is coming from, same with Google and Facebook) In any event, if you Tariff the pieces to make this phone, those BOGO’s are going away and the poorer of the population won’t be able to afford $1000 cell phones.
The tariffs on Canada will increase the cost of building homes, raising housing costs.
The bottom line is, while it could create some uneducated manufacturing jobs in the US (which I assure you we do not want going forward because they will simply be done by robots soon) the real result will be a huge increase of the cost of goods for the American public, so even if you get a $20/hr manufacturing job, the costs of everything will rise and you will still feel like you are making $10/hr, but you will also have the added benefit of the medical bills from your repetitive stress injury.
We are in a global economy. Having that global economy keeps prices down for everything. The answer is not to try to go back to 1940’s US where all of the jobs were in manufacturing, those days are gone. We should be looking towards the future and creating businesses and jobs for the 21st century, not angering the entire world against the US so that some uneducated people can put phones together in middle America.
Invest in peace…