Republican politicians cower in fear of Trump rather than the voters. (With exception for the fear of the violent MAGA voters). Corporations cower in fear of Trump rather than their customers. But soon their goods and services will be too expensive for most customers. And what happens to a corporation when it has no customers? Trump is t…
Republican politicians cower in fear of Trump rather than the voters. (With exception for the fear of the violent MAGA voters). Corporations cower in fear of Trump rather than their customers. But soon their goods and services will be too expensive for most customers. And what happens to a corporation when it has no customers? Trump is temporary, business failure for lack of customers is permanent.
I don't think you have to worry about goods/services becoming "too expensive for most customers". Businesses will just relocate to other countries that can afford them. There is nothing to hold American businesses in America. If it becomes too expensive to do business here, or if people can no longer afford your product you move your plant to the Dubai or Russia or Hong Kong or India. This debacle is not going to hurt big business.
The American market is the largest in the world outside of China. Big corporations will not abandon it. And remember, all of this tariff nonsense is Trump's moronic response to the outsourcing of production by American companies that began in earnest under Reagan. The factories are not going to move to Dubai or Hong Kong, those are two of the most expensive cities in the world. They have already moved to Vietnam or Cambodia or Bangladesh or China. What they won't do under Trump's moronic tariff regime is move back to the USA. The costs are too high even to build the plant, especially now that Trump has targeted building materials like lumber and steel with high tariffs and is trying to deport all the labor. I stand by my comment - large corporations continue to cower to Trump at their long term peril.
Businesses need stability to plan and build. We don't have that anymore. No one's going to build factories here because of the tariffs. If anything, we'll see flight.
I don't think business can count on the American market remaining the largest in the world outside of China for long, in this economic environment. I don't believe big business cares about "expensive cities", they can charge more there. Most of the American businesses (Amazon, Walmart, Bershire Hathaway, etc) aren't "factory" based. And I stand by mine, they won't continue to cower to Trump. If he doesn't right the ship, they'll bail to a more friendly place to do business.
All three of those companies depend heavily on manufactured goods. Berkshire Hathaway owns several manufacturing concerns directly. The common thread is that all of them depend on low cost overseas factories for product. If the tariffs stay in place the cost of those products will rise and if they rise high enough they will lose their customers. That's the law of supply and demand at work. Remember, Walmart became Walmart by selling low priced goods to middle and lower class consumers. How do you think those customers will react when Walmart if forced to raise prices to Nordstrom levels? Businesses care about sales whether they come from expensive cities or Armpit Iowa. And Amazon depends on customers who either want free overnight shipping or who live in Armpit Iowa, a town so small even WalMart won't bother.
Republican politicians cower in fear of Trump rather than the voters. (With exception for the fear of the violent MAGA voters). Corporations cower in fear of Trump rather than their customers. But soon their goods and services will be too expensive for most customers. And what happens to a corporation when it has no customers? Trump is temporary, business failure for lack of customers is permanent.
I don't think you have to worry about goods/services becoming "too expensive for most customers". Businesses will just relocate to other countries that can afford them. There is nothing to hold American businesses in America. If it becomes too expensive to do business here, or if people can no longer afford your product you move your plant to the Dubai or Russia or Hong Kong or India. This debacle is not going to hurt big business.
The American market is the largest in the world outside of China. Big corporations will not abandon it. And remember, all of this tariff nonsense is Trump's moronic response to the outsourcing of production by American companies that began in earnest under Reagan. The factories are not going to move to Dubai or Hong Kong, those are two of the most expensive cities in the world. They have already moved to Vietnam or Cambodia or Bangladesh or China. What they won't do under Trump's moronic tariff regime is move back to the USA. The costs are too high even to build the plant, especially now that Trump has targeted building materials like lumber and steel with high tariffs and is trying to deport all the labor. I stand by my comment - large corporations continue to cower to Trump at their long term peril.
Businesses need stability to plan and build. We don't have that anymore. No one's going to build factories here because of the tariffs. If anything, we'll see flight.
I agree; this “policy” is at best, ill-conceived, at worst moronic. It will not achieve any of its stated goals.
I don't think business can count on the American market remaining the largest in the world outside of China for long, in this economic environment. I don't believe big business cares about "expensive cities", they can charge more there. Most of the American businesses (Amazon, Walmart, Bershire Hathaway, etc) aren't "factory" based. And I stand by mine, they won't continue to cower to Trump. If he doesn't right the ship, they'll bail to a more friendly place to do business.
All three of those companies depend heavily on manufactured goods. Berkshire Hathaway owns several manufacturing concerns directly. The common thread is that all of them depend on low cost overseas factories for product. If the tariffs stay in place the cost of those products will rise and if they rise high enough they will lose their customers. That's the law of supply and demand at work. Remember, Walmart became Walmart by selling low priced goods to middle and lower class consumers. How do you think those customers will react when Walmart if forced to raise prices to Nordstrom levels? Businesses care about sales whether they come from expensive cities or Armpit Iowa. And Amazon depends on customers who either want free overnight shipping or who live in Armpit Iowa, a town so small even WalMart won't bother.