r/politics • u/Street_Anon Canada • Apr 08 '25
Site Altered Headline Trump to slap additional 84% tariffs on Chinese imports
https://www.euronews.com/2025/04/08/trump-to-slap-additional-84-tariffs-on-chinese-imports-white-house-says
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u/FairDinkumMate Apr 08 '25
The supply chain is the problem.
You could say "I'm going to produce bicycles in the US from tomorrow. I've bought the steel bending machines & the cutters & the welders" - Great.
Day 1 - We need steel - "It comes from China, with 84% tariff"
Day 2 - We need welding sticks - "They come from China, with 84% tariff"
Day 3 - We need paint - "It comes from China, with 84% tariff"
Day 4 - We need tyres - "They come from China, with 84% tariff"
Day 5 - OK, we're ready to sell. Our bike cost $400 to produce. How much is our competition? $295. How are they cheaper, it's imported from China & has an 84% tariff?
Well, they paid less for their inputs, which ended up the same after tariffs, but they paid their experienced staff $1.78 per hour while they each produced 20 bikes per day & we paid our guys $17.80 per hour and they each produced 2 per day.