Export Tariffs: The New Art of Economic Warfare | Metals Mine

  • Export Tariffs: The New Art of Economic Warfare

    From macroanchor.substack.com

    In a world envisaged by David Ricardo, nations trade freely according to relative efficiency. Each produces the goods it can make at the lowest opportunity cost and exchanges them for those it cannot. Under such conditions, trade balances are naturally in equilibrium, and what one country gains through importing it gives back through exporting. The gains from specialization are shared across borders and goods, and the system functions symmetrically. To understand how these gains are distributed, economists measure welfare through consumer and producer surpluses. Consumer surplus is the difference between what ... (full story)

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Vancarbon
Oct 28, 2025 1:29pm
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Quoting mcsilver
This misses the fact that businesses in the U.S. will export the manufacturing and labor to another country because it is cheaper, e.g., China, Mexico, not because the products cannot be made in the U.S. or materials cannot be had in the U.S. If you can pay someone in China to make something for $2.00 or make it in the U.S. for $4.00 and there is no tariff to offset this discrepancy, the U.S. will lose most of its manufacturing over time because competitive pricing is what drives the market. American workers suffer the consequence which will over...
So how many jobs has this shift in policy and tariff agenda created ?

Has manufacturing returned to the US ?
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Twocans
Oct 28, 2025 11:23am
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"nations trade freely according to relative efficiency. Each produces the goods it can make at the lowest opportunity cost and exchanges them for those it cannot." Wish in one hand and lay off the crack pipe...
mcsilver
Oct 28, 2025 11:36am
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This misses the fact that businesses in the U.S. will export the manufacturing and labor to another country because it is cheaper, e.g., China, Mexico, not because the products cannot be made in the U.S. or materials cannot be had in the U.S. If you can pay someone in China to make something for $2.00 or make it in the U.S. for $4.00 and there is no tariff to offset this discrepancy, the U.S. will lose most of its manufacturing over time because competitive pricing is what drives the market. American workers suffer the consequence which will over time trickle up to the entire economy. Big companies will pour millions into propaganda that tariffs will cause a recession for an extended period of time
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