wait wait wait....does this mean trump is technically winning his trade war?

well, the idea is

That if the prices in US are higher, some company will rise to fill the market with a better price, so the production is based in America, and prices no longer rise in the US

as well as more jerbs

thats not how it works

or, both sides then agree to drop tariffs again, so that the US can export more

Cuz as i understand it, the US demanded 0 tariffs, but China did demand it

it isnt?

if you could make enough steel, at the same or lower price as foreign imports, then they would be. Because just the cost of shipping means local industry should have advantage assuming they can go toe to toe in production volume at the same cost.

ive only seen good vibes and words spoken about TB on twitter and in twitch chat... which the latter is a real rare one

TB left us without an answer to the Trap question!

so if you artificially raise the cost of foreign imports of that steel, prices can only raise for a few reasons 1) at first there is less supply at that lower costs at first, so we have price increases almost like there was a shortage until the lowest cost produces increase production to take up the slack. Which can take a couple of years. but even then, the prices will not fall back to before the tariff.

whats worse, if you ever lift the tariff, then suddenly those produces who just increased production are now having less demand, because they are expensive now. so now they need to downside, which leads to a bunch of people getting fired, now they need to find work, and they might not have the skill set

the only thing that happens when you are winning a trade war is that your costs increase **the least**

but they do increase

yes

thats more detailed of what i said wasnt it?

the ultimate goal of a tariff war is to screw over your competition

at the cost of your own people

yes

thats why its a tariff WAR

the price of things doesn't mean its more valuable, it just means you need more of your currency to buy it. so in effect, all you do is devalue your own currency

a war that has a high risk of destroying your own local industry.

unlike a real war where you can just bomb the enemy production and defend yourself physically.

well i think the idea behind this one is that the local industry is non-existant because they all moved to cheaper nations for production

and they moved for a reason

yes, because it was more profitable

so with no local industry (cuz they moved), i think that way Trump is either gonna get a better deal for america, or force a local industry to be created

it was cheaper to make, meaning they can sell for less, meaning more people buy. meaning they make more profit. that is a net benefit for everyone involved. Because if we are importing that good, it means moved from making that product, to consuming it to make a different product.

so by that being made cheaper elsewhere, those industries that use it, can product their stuff for cheaper, meaning they get more profit with cheaper product, meaning they can expand, and we get more jobs

but they expand, in those countries

we don't get more pleb jobs, because those are done in those pleb nations

so, we have two people, 1 has a pleb job and can feed their family. the other doesn't have a job. the solution tariffs offer is to basically cut persons 1 pay in half, and give it to person 2. so now person 1 can't afford to keep his family afloat. so now he needs a second job, and person 2 still doesn't make enough to live, so he might as well not have a job.

because the actual value of these products does not change, just how much of your currency it takes to buy it.

so your currency is now worth less, because you can get less with it

yeah but before those tarifs, there were 0 pleb jobs, so neither got to work

in this scenario

okay, so they both still don't make enough to live.

rather than figure out how to make them worth of more than a pleb job.

i.e. get them into the service industry, because that is what America sells more of now.

less products, more services

thats assuming they're capable of more than a pleb job

well now you have to fight automation