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greg
@gregfromstl
Maybe I'm just feeling controversial, but I don't understand what's wrong with retalitory tariffs. What am I missing here? Are we actually not being "out tariffed"? Or is there a reason other countries should have higher tariffs than us? I have zero expertise on this topic and see a lot of complaining but very little explaining. Could someone break down why the current approach is bad?
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youssef
@yssf.eth
well first they’re not retaliatory, as of now the US charges much more than every country (including those that import more from the US than export, are you retaliating because they give you money?) but even if countries were charging their importers a lot more than reality, it doesn’t mean it’s a bad thing for the US, it’s actually the opposite: the US got to climb the value-added ladder (think Apple, MSFT etc) while getting cheap goods/materials from the rest of the world, it’s a process that made USD the global reserve currency because importers pay in USD, which in return goes back into funding US bonds, it’s a system designed by the US to keep the US rich. These high tariffs are essentially saying “the US is too rich let’s make ourselves poor again”
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christopher
@christopher
Short term benefit in increasing tariffs outweighs the long term loss of competitiveness by concessions enumerated in law or contract. Tit-for-tat game theory means we rapidly discover the blow-off price point for which both parties can’t afford — politically and otherwise. It worked in 2018 and will work again.
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Myza
@joybrishti
Retaliatory tariffs can make prices go up and start trade wars. It’s not just about matching others, but how it affects us too.
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