> But, he claims, there are network effects to manufacturing. Those countries low on the value chain, once they learn how how to build things, are better equipped to rise in the value chain and replace companies completely.
So you place tariffs on specific goods that you wish to strategically produce domestically.
Doing a blanket tariff on (e.g.) Bangladesh and Sri Lanka—which hits clothing (see Nike, Adidas stock prices)—is not helpful. Why is the US interested in making sneakers and t-shirts?
Doing specific tariffs for strategic / national security purposes is one thing, but that is obviously not what is happening here: and it is obvious because tariffs were put on the island of Diego Garcia, whose on inhabitants are US and UK military personnel, and Heard and McDonald Islands in the middle of nowhere whose only inhabitants are penguins.
So you place tariffs on specific goods that you wish to strategically produce domestically.
* https://www.noahpinion.blog/p/when-are-tariffs-good
Doing a blanket tariff on (e.g.) Bangladesh and Sri Lanka—which hits clothing (see Nike, Adidas stock prices)—is not helpful. Why is the US interested in making sneakers and t-shirts?
Doing specific tariffs for strategic / national security purposes is one thing, but that is obviously not what is happening here: and it is obvious because tariffs were put on the island of Diego Garcia, whose on inhabitants are US and UK military personnel, and Heard and McDonald Islands in the middle of nowhere whose only inhabitants are penguins.