I've been short on work, which means I've been poor. I use my off time to work on side projects that I simply could not afford to complete if I paid what US companies charge for tools, components, and custom PCBs. My ability to innovate is seriously impacted by these tarrifs and there is no alternative that I can afford.
I recently created something that people in my industry actually want to buy, but I only ordered enough parts for 5 units. I had priced them so that when I sold them, I'd be able to put larger orders in to begin getting quantity discounts. Only problem is, what was going to be a $2k order will now cost roughly $5k, and guess what? I didn't charge $1k apiece. Now I'm out of stock and stuck in limbo waiting to earn cash from my regular job and see how these tarrifs shake out.
To clarify, I'm not defending the tariffs or the way this whole thing is implemented. I'm sure it puts a lot of people in trouble.
I'm only criticizing the race to the bottom that the platforms and kind of consumption mentioned are part of. Sure at the individual level we can find advantages to it, but I'm arguing that we're collectively worst off.
> I'm only criticizing the race to the bottom that the platforms and kind of consumption mentioned are part of.
You're going to (collectively) need to increase the incomes at the low-end if you want people earning minimum-wage to still be clothed and able to furnish their homes. A significant portion of people who by from Shein have no other options within their budgets, and their existence tends to be ignored in conversations such as this one. The unspoken social contract has been "You get low wages, but get access to cheap consumer goods", but now the cheap consumer goods are being taken away.
There's a dissonance between wanting American-made/substantive/good quality/expensive consumer goods and maintaining the minimum wage at unlivable levels to avoid knock-on inflation. You can't have the economics of Switzerland coexisting with McJobs.
There is no dissonance here, workers being put in competition with much cheaper ones on the other side of the planet is absolutely going to drive their wages down. They got 30 years of that... and many of us in Europe did too.
Wages may have to go higher at the lower end, but consumption also needs to change. Most of the price of "food" is packaging, transport and marketing, not farmers' wages. Here in France people buy on average 50 items of clothing a year, 50! The amount of items has increased by 50% in the last 15 years.
Yeah pretty funny to see mostly the same people calling for a $20+/hr "minimum wage" on one hand, and bemoaning the tarrifs on the other hand. They will tell you that if you can't pay your employees that much, then you don't have a viable business. But they will turn around and whine about how their cheap Chinese crap purchases are now going to cost what a "viable" domestic producer would have to charge.
It's easy to look at the internet at large see people with these contradictory takes. But 1) these groups may consist of entirely different people who are vocal about different topics, or 2) the wide brush obscures critical context.
I support a $20 minimum wage AND
I think tariffs can be justified, especially when we use free trade to ignore the external costs to the environment and the arbitrage of exploitative labor AND
I have a problem with implementing tariffs in such a shotgun, ill-considered, shoddy way lacking clear strategy or intent
Most people bemoaning the tariffs are doing so because they understand that production will not actually come back to the US. It's not that these people hate Americans and don't want domestic manufacturing (or to pay for it), it's that they can see the reality that this isn't what's actually going to happen. Instead, the price of goods will just rise.
A lot of these people too have been saying "buy local!" or "support black businesses!" for a while now. They're not the same people bemoaning the lost of hyper consumerist plastic junk.
I'm pretty far to the left, and I'm actually fine with tariffs on China in principle for exactly the reason that you mention. Tangentially, I don't think that "free trade" can ever be meaningfully free when goods flow freely but workers can't move to where the high-paying jobs are - it's a recipe to create market inefficiencies that companies can profit from.
However, the fact of the matter is that our economy as it exists right now relies on cheap goods from China. This can and should be changed, but a meaningful plan to do so would last years of careful incremental changes if the goal is to benefit Americans as a whole. This is emphatically not what this admin is doing.
I'm a lefty lib and, like lots of us, I've wanted restricted trade with China since we granted them MFN status in the '90s. I think that was a bad idea in the first place.
Neoliberalism is not popular and never was. Donors like it. Workers don't. The only reason either party could stick to it and still win elections, is because both stuck to it. Neither "defected".
Tariffing Canada and Mexico? The EU? Yeah, not so much. And it makes working against Chinese trade far less effective and more-costly.
Claiming these aren't a tax on Americans? That's just a lie. Chaotically switching your message and actual policies day to day? That's not how you foster investment in factories that'll take years to be net-profitable. Working against the CHIPS act? What the literal fuck, that's exactly the kind of thing you [edit: the "you" here is the administration and their boosters, not necessarily "you", the poster] claim to want! That was a really good idea!
So, I agree with a tiny amount of the overall policy, while finding its implementation incompetent, and the other parts to work so strongly against the effects of the part-I-like that I find desirable, that I doubt my motivations for wanting to reduce trade with developing authoritarian states and the administration's are even the same.
If you want to restrict imports from China, it is somewhat necessary to restrict trade from Western countries as well, in order to prevent evasion by trans-shipping (until and unless they restrict Chinese imports as well).
Canada has been laundering Chinese aluminum and steel, Malaysia has been laundering Chinese ‘honey’, etc.
There were way cheaper and more-effective ways to achieve that. And that's not why the administration says they're doing this, anyway. It's because we have trade deficits, period. Or it's because of fentanyl, since that was the justification for the invocation of emergency powers that're letting the executive impose tariffs at all.
>If you want to restrict imports from China, it is somewhat necessary to restrict trade from Western countries as wel
A good strategy would be not to impose tariffs all goods, just the more important ones, and you would do it WITH your allies. Threaten the same tariffs on allies as China if they do not get on board. You could even use the leverage to get China to increase domestic consumption so they aren't exporting so hard.
Trump's policies aren't going to achieve what he thinks they will.
This is a bit orthogonal to the broader conversation, but you've hooked me with your predicament: Can you allow for preorders or "Expressed interest" at a new price point? (or at a hand-wavy price point to assess interest re: overhead/bulk/etc.) If tariffs come down, you can refund/credit, but for customers who wanted this, something-at-some-price may be better than nothing-at-any-price.