this post was submitted on 27 Mar 2025
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[–] merc@sh.itjust.works 1 points 4 days ago

Theoretically, they encourage Americans to buy American-made alternatives to tariffed goods. In some case that will work, but the tariffs need to be targeted for that to happen. For example, putting a tariff on fishing rods might make people buy locally-made fishing rods rather than imported ones (this is an example of a retaliatory tariff Canada placed on the US btw).

This doesn't work when the tariffs are on things that aren't made locally. If you put a tariff on things that aren't made locally you just make things more expensive. If the government is sane and stable, businesses might invest in a factory to produce something that isn't made locally to take advantage of the tariffs, but that kind of thing takes time. And if you think the government might change its tariff plans before you can finish your factory, it's not worth the investment.