Tariffs work

[blindedbythelight]

Tariffs are only effective when they are so large that China or Mexico would be unable to pass the cost on to US consumers because their product would not be price competitive.

You take a $40,000 car coming in from Mexico and put a 25% tariff on it and price goes to $50,000 and nobody is going to buy

 

[Toots_mcgee]

So reducing competition in the USA will benefit consumers? No. Inflation bro.

 

[r14veer]

Tariffs are only effective when they are so large that China or Mexico would be unable to pass the cost on to US consumers because their product would not be price competitive.

You take a $40,000 car coming in from Mexico and put a 25% tariff on it and price goes to $50,000 and nobody is going to buy

No. This is not, nor has it ever been how capitalism works. If it costs $50,000 to buy a foreign car that normally costs $40,000, the manufacturers of domestic cars (a.k.a. cars made with parts from all over the world and assembled here and abroad) will raise the prices of their vehicles maybe not to match, but close, and low enough to say it still costs less than a foreign car (a.k.a. cars made with parts from all over the world and assembled here and abroad).

 

[r14veer]

Simple solutions to over-simplified problems can work, but they usually don't.