logoalt Hacker News

epolanskiyesterday at 5:19 PM0 repliesview on HN

Tariffs almost never make sense, unless it's an industry that's super important for your own survival.

Capitalism is about efficiency, and eventually there are going countries where producing certain items will always be more efficient. East asian countries have spent decades innovating and investing in their manufacturing capabilities.

Also, one thing that grinds my nerves are the narratives of trade balances that only focus on physical goods but conveniently ignore services.

US exports trillions in software, ai, music, videogames, financial services, cloud, and that's conveniently ignored.

Eventually tariffs come back biting those who issue them, because the moment your local industries don't need to compete anymore to survive, they have no incentives to innovate.