quasse 8 days ago

Universal tariffs with no exception don't even incentivize domestic manufacturing when it cuts local manufacturers off from an outside market that's bigger than the domestic one.

My company manufactures equipment in North America, with the most expensive input coming domestically from Ohio. Guess what though? Retaliatory tariffs from the global community means that the most rational course of action is now to move that manufacturing *out of the US* so that we can sell to the global market without penalty.

Sorry Ohio, but Mexico is currently *not* engaged in a trade war with Canada and half the EU so the rational decision for a company who wants to sell in those markets is to divest from the US.

1
pbasista 8 days ago

> engaged in a trade war with ... half the EU

That is generally not possible. All EU countries share a common trade policy. Another country can either be in a trade war with the entire EU or with none of the EU.

According to the Wikipedia [0], The EU member states delegate authority to the European Commission to negotiate their external trade relations.

[0] https://en.wikipedia.org/wiki/Common_Commercial_Policy_(EU)