Kamala Harris woos middle class with pledge to give business a break

[Charlie Sheen]

This is an argument from economic bookss publushed with federal funding while Bill and George were pushing NAFTA, the US currently has heavy deficits within main trade partners and all the leverage in the world to impose tarrifs while setting up internal supply chain production. It'll suck a bit in the beginning, but will be worth it in the end.

Protectionist tariff surprises reduce US foreign trade and domestic investment strongly, in aggre-
gate and across most sectors. Greater uncertainty about US trade policy has also negative effects.
It weighs particularly on imports. Both first and second moment trade policy shocks improve the
trade balance, but this comes at the cost of a domestic demand compression and persistent GDP
lossess

source: Boer, Lukas, and Malte Rieth, 2024. “The Macroeconomic Consequences of
Import Tariffs and Trade Policy Uncertainty,” IMF Working Paper 24/13

[Jasper]

The more you tax businesses, the more they take their business elsewhere. Simple economics.

that's why all top 10 (1%) giant businesses call USA home.

[ZenMaster]

source: Boer, Lukas, and Malte Rieth, 2024. “The Macroeconomic Consequences of
Import Tariffs and Trade Policy Uncertainty,” IMF Working Paper 24/13

For the 10 industries with the highest value of imports covered by
section 301 tariffs, the models estimate that the value of U.S. production rose between 1.2
percent and 7.5 percent in 2021 as a result of section 301 tariffs

Some effects of section 301 tariffs would likely be delayed. It may take time for importers to change
their supply chain to import from other sources or find domestic producers. Investment in additional
domestic production, if necessary, would take time to come online but would eventually increase
domestic production and reduce the price of the domestic good. These effects would all increase the
longer-run impact of section 301 tariffs, particularly if importers and domestic producers anticipated the
tariffs remaining in place long enough to make these costly changes worthwhile.
The effects of section 301 tariffs may be influenced by the perceived uncertainty regarding the tariffs.
For example, if importers and exporters believe that the tariffs may be temporary, their response to
these tariffs may be muted. The uncertainty would delay the effects of tariffs because the importers and
exporters would wait to see if the tariffs remain, increase, or decrease in the future.

https://www.usitc.gov/publications/332/pub5405.pdf

During the Biden Administration, Senators Brown and Casey have fiercely advocated for keeping tariffs in place to protect Americans workers. In 2021, Brown and Casey applauded the Administration for an agreement with the European Union on steel and aluminum tariffs. Earlier this year, Brown and Casey urged President Biden to rescind the suspension of market-balancing tariffs on Chinese solar product importers in four southeast Asian countries to level the playing field for American manufacturers and workers.

Dear President Biden:

As your Administration concludes the interagency review on Section 301 tariffs, we write to share our serious concerns about reductions in the tariffs that will enable China and other global competitors to resume their anti-competitive activities without consequences. While not the subject of interagency review, we share similar concerns about reductions in 232 tariffs, as well as related actions that would undermine American steel and aluminum producers as a result of negotiations with the European Union on the Global Arrangement on Sustainable Steel and Aluminum.

These tariffs are essential to level the playing field for American workers to compete and counter unfair trade practices by China, which seeks to circumvent our trade laws, steal American technology, and cheat and bully its way to global economic dominance. We urge the Administration to maintain the Section 301 and Section 232 tariff regimes as we continue our work with partners and allies to forge a sustainable approach to trade policy that supports American workers and fair global economic competitiveness.

In 2018, following an investigation by the United States Trade Representative (USTR), Section 301 tariffs were imposed on goods imported from China in response to its policies and practices regarding technology transfer, intellectual property, and innovation. The investigation concluded that the Chinese government’s trade policies were unreasonable, discriminatory, and created trade barriers for United States commerce. Section 232 tariffs on steel and aluminum were also imposed in 2018 following an investigation by the U.S. Department of Commerce on national security grounds. A 2022 report from USTR on China’s compliance with the World Trade Organization only underscores that the underlying economic reasons and market conditions for why the tariffs were imposed have not changed.

According to a March 2023 report from the United States International Trade Commission (USITC), Section 301 and 232 tariffs led to significant increases in domestic production in the tariffed industries that were analyzed. In addition, according to the American Iron and Steel Institute, the imposition of Section 232 tariffs incentivized new capital spending by domestic steel makers, with announced investments of nearly $22 billion in new, expanded, or restarted production since March 2018.

The United States should be taking control of its future by investing in American workers and communities, revitalizing domestic manufacturing and industry, and combatting the growing threat posed by China and other nonmarket economies. The Chinese government has undermined U.S. industrial markets by expanding subsidies for steel, aluminum, semiconductors, solar panels, transportation, and other critical infrastructure. From forced labor to currency manipulation and dumping and circumvention, the Chinese government does not play by global rules-based order. The U.S. should consider the Chinese government’s long-standing practice of using economic coercion and supply chain retaliation as a geopolitical weapon when taking action that could undermine efforts to shore up our domestic manufacturing and supply chains.

Thank you for your attention to this important matter. We look forward to working with you to protect workers and communities, revitalize domestic manufacturing and industry, safeguard our national and economic security, and confront the threat posed by the Chinese government and other nonmarket economies.

Sincerely,

Senator Bob Casey

Senator Sherrod Brown

[Media Moderator]

Of course she's trying to woo them. They've been solid Republican since almost forever, but the Democrats are the enemy of small businesses. Small business HATES the Democrats.

[Charlie Sheen]

https://www.usitc.gov/publications/332/pub5405.pdf

Have you considered there might have been unique conditions in the 2020-2021 us economy that would have driven demand upwards to support the rise in production value? Maybe several rounds of stimulus injected into the economy. Something like that?

[ZenMaster]

The US is a debtor nation, there isn't enough production of needed goods because it's imported instead for higher corporate profit margins. The interest payment on the federal debt was 1 trillion last year and if things stay the same it'll be 2 trillion in around 6 years. 2 trillion is 40% of the current budget and it's completely unsustainable.
You can fix this by reducing government spending and creating an environment for more business to produce on US soil, increasing the average wage. There's more to that equation, but tariffs is part of it given the current situation.
There are also other ways, but those aren't good options as they come with dystopian consequences.

The European Union imposed tariffs on Chinese EVs earlier this year, took around three months for the various Chinese EV makers to announce openings of factories within the EU, creating jobs there which would otherwise be in China. They'd do the same in the US if it wasn't more profitable to open those plants in Mexico.