Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
Except, this measure won’t result in that at all. Punishing companies for importing is only going to punish consumers. The company wants it for as cheap as possible, and that will often be importing. Even ifbit becomes expensive to import, it will be cheaper than the capital needed to set up the infrastructure for manufacturing domestically. Rewarding companies for sourcing materials and labor domestically will incentivize them to bring jobs here. At least more so than making them pay more to bring it in.
Except, this measure won’t result in that at all. Punishing companies for importing is only going to punish consumers. The company wants it for as cheap as possible, and that will often be importing. Even ifbit becomes expensive to import, it will be cheaper than the capital needed to set up the infrastructure for manufacturing domestically. Rewarding companies for sourcing materials and labor domestically will incentivize them to bring jobs here. At least more so than making them pay more to bring it in.