this post was submitted on 09 Apr 2025
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They are promising to gut the CHIPS Act which would be needed to even think about doing this.
Can't have a Biden law. Biden introduced that so it must be bad for the US.
I ran into this at work today. Proposed a very simple approach for something to an architect and an engineering lead. Engineering lead said this was a practical solution that solves a problem that's been plaguing them for two years. The architect nearly immediately said, "well, the real source is a mainframe that was stood up in the very early 80s. Let's ignore the fact that changing it takes an act of Congress or that we have multiple modern downstream systems between it and us that are a much better home for this new function."
It really seemed to amount to, "I didn't come up with this, therefore I don't support it."
Ah, corporate politics.
Architects and engineers are mortal enemies.
Apple tried this in the past. Who knew making special little screws was way more expensive to make in the US. Kind of sucks when you outsource all of your manufacturing ...
It's kind of awesome for everyone if you don't piss off your trading partners. It happens in the first place because it's better for everyone involved! It's a consensual arrangement that parties only engage in because it is in their interests.
The only silver lining I see to the tariffs is that it could end up sticking it to all these large corporations who fought hard to move operations out of the US, to places they knew couldn't meet US worker standards, in order to save money. Obviously, US consumers will feel the pain, but we've been buying products subsidized by Chinese suicides in Foxcon factories, and so perhaps it's a comeuppance.
Disclaimer: I don't know what's going on.
Realistically? For some stuff American jobs will move back, but I think most of the jobs will just move to other countries that don't have the scrutiny that China has. Countries like the Philippines which have only a 17% tariff on the new scheme. On top of that, they probably are lower cost for labor and the biggest cost is the factory itself and shipping infrastructure. If a company has to finance a new factory anyways, the Philippines is more attractive than the US.
And that's just a random country I picked from the tariff list. I'm sure there some country out there that has the right mix of cheap labor, shipping infrastructure, location, and obscurity that lets it avoid tariffs to the point where most good come from there instead.
I think that definitely sounds reasonable, and I think, if there's any hope for these tariffs to actually meet their stated purpose, the government of the US would need to just say, if working conditions don't meet the same standards, there will be additional tariffs. I think that's exactly where tariffs ought to be applied, when some country takes advantage of, essentially, human rights. We don't have the right to stop them, but we do have the right to tax their products for it, to the point it's not worth it.
Obviously, that's not how things will go.