It’s actually not. If you’re starting a business right now with the goal of selling to customers all over the world, setting up shop in America is not looking good. You’d pay exorbitant tariffs on inputs and machines.
It’s better to manufacture out of the country and let US consumers eat the tariff cost on import while keeping your operations efficient outside of the US tariff zone.
> If you’re starting a business right now with the goal of selling to customers all over the world
If you do that now in the USA, there’s a fairly large risk that your exports will be taxed, and, with exports to the USA tanking, there’s excess production in the rest parts of the world, so prices will go down outside the USA, at least temporarily.
⇒ If you’re starting a business in the USA today, you should only aim for the domestic market.
I want to believe that, but the president is not doing this by himself. His was re-elected democratically by a majority of voters, and he enjoys the support of the house, the senate, and the federal courts. I fear that the problem lies in the hearts and minds of the American people.
As a Canadian, it has been hard to stomach. I thought we were brothers working together towards a common future. It would be a lot less heartbreaking if this really was caused by a single individual.
That's not what MAGA world wants though. They want products made here, sold here, bought here. MAGA world does not care about the rest of what the world's people do. If they want to buy our stuff, great, but then blame other governments for taxing American products like there's no blame to share.
Sure, but in that case, tariffs on finished goods are the way to go. You'll first recover the assembly business and then over time you could reshore more of the inputs.
But like, it's not the 1950s anymore, basically every product consists of parts from all over the world.
> with the goal of selling to customers all over the world
No, I think you're missing the point. This is not to create world-class companies, capable of selling abroad. This is to inject money and optimism in small, local, antiquated businesses that have been long priced out of any competition with the rest of the world.
It’s better to manufacture out of the country and let US consumers eat the tariff cost on import while keeping your operations efficient outside of the US tariff zone.
It’s an extraordinarily poorly planned policy.