I am very much on the fence on this one. I can tell you, without a shadow of a doubt, based on having been in manufacturing across various industries for over thirty years, that the US and Europe have been on a path to loose nearly all manufacturing capacity within ten years, maybe twenty at best.
How do we compare the pain (and yes, some destruction) that we have to endure today against the devastation that is clearly in the horizon for both regions within a decade or two?
To be sure, what's going on today should have been done twenty to thirty years ago. Doing this today is far more difficult and painful.
I think Kevin O'Leary put it best: What we want a reasonably free markets. It isn't just about tariffs. It's about regulatory lockout, intellectual property and more.
For example, India imposes as much as a 110% tariff on US cars and trucks. The list of such actions --which also included non-tariff rules-based restrictions-- is long. From China imposing up to 25% on our cars, autos, chemicals and food to the EU, Canada, Mexico and others following suit. Brazil collected over $800 million in retaliatory tariffs blocking US pharmaceuticals, autos and textiles.
In other words, the relationship with hundreds of countries has been very one-sided for a long time. US industry needs to export to thrive, but if countries like Turkey impose 140% tariffs on our autos and trucks, markets are de-facto shut down.
How long can any country survive this kind of inequity?
So, yeah, this is a rough moment. I hope it is for the best. Everyone benefits from a more open and balanced market.
And then, of course, there's one of the elephants in the room: Intellectual property theft.
Going back to Kevin O'Learly:
https://www.youtube.com/watch?v=dKkdor6_rw4
https://www.facebook.com/watch/?v=567065763062114
https://www.youtube.com/watch?v=jGFWWqbDwuw
https://www.tmz.com/watch/kevin-o-leary-china-tariffs-04-09-...
How do we compare the pain (and yes, some destruction) that we have to endure today against the devastation that is clearly in the horizon for both regions within a decade or two?
To be sure, what's going on today should have been done twenty to thirty years ago. Doing this today is far more difficult and painful.
I think Kevin O'Leary put it best: What we want a reasonably free markets. It isn't just about tariffs. It's about regulatory lockout, intellectual property and more.
For example, India imposes as much as a 110% tariff on US cars and trucks. The list of such actions --which also included non-tariff rules-based restrictions-- is long. From China imposing up to 25% on our cars, autos, chemicals and food to the EU, Canada, Mexico and others following suit. Brazil collected over $800 million in retaliatory tariffs blocking US pharmaceuticals, autos and textiles.
In other words, the relationship with hundreds of countries has been very one-sided for a long time. US industry needs to export to thrive, but if countries like Turkey impose 140% tariffs on our autos and trucks, markets are de-facto shut down.
How long can any country survive this kind of inequity?
So, yeah, this is a rough moment. I hope it is for the best. Everyone benefits from a more open and balanced market.
And then, of course, there's one of the elephants in the room: Intellectual property theft.
Going back to Kevin O'Learly:
https://www.youtube.com/watch?v=dKkdor6_rw4
https://www.facebook.com/watch/?v=567065763062114
https://www.youtube.com/watch?v=jGFWWqbDwuw
https://www.tmz.com/watch/kevin-o-leary-china-tariffs-04-09-...