Unstoppable force meets 104% tariff...
replies(4):
https://www.utilitydive.com/news/ustr-biden-tariff-increase-...
- a call to action
- dump and pump stock market scheme
how many HN users, say top 5000 commenters and people with craziest CVs and or income will profit of that? it would be stupid not to, right?
Indeed, it's becoming very obvious that the US is slowly turning into a resource curse nation. Sad.
Of course US tariffs are only going to make those Chinese panels cheaper for the EU and the rest of the world, which will then be less reliant on US-sourced fossil fuels. In the long run, putting up a wall in front of the your beachfront property is not going to protect your house when the tide comes in.
You can argue about whether tariffs are good or bad, but in any case there's a vast difference between "target[ing] strategic product categories" and bluntly hitting entire ccTLDs.
edit to respond to dead comment:
The Chinese wasted way more money on Solyndra's than the US did. Most of their solar power startups were failures too. Yet now they dominate because they subsidized more than one and didn't give up after one failed.
And they should be set just high enough that the industry remains competitive while not allowing for price gouging. We know companies will seek to maximize their prices. So if a foreign competitor is selling for 8% cheaper, then tariffs should be no more than 9%. We know from experience that manufactures will sell at the same price as foreign competition and will pocket the difference.
They should also be gradually reduced over time. The goal is to have domestic industries become globally competitive. And that necessarily means that companies need to strive to improve efficiency so they can match or beat the prices of global competitors. If that can't happen, then maybe those companies need to go away.
The reason tariffs are bad in the long term is A) it incentivize global competition to become even more efficient; B) it encourages domestic industries to be non-competitive. So the industry being favored by tariffs will never grow into a global power.
So tariffs on solar panels are fine, so long as they come with other incentives to spur domestic consumption (to drive efficiency gains) and a plan to lower those tariffs over time.
Blanket tariffs are pretty much never good, the only good reason to institute blanket tariffs on a country is as a prelude to direct conflict. As it will provide a market incentive for consumers to replace goods from that country with a more expensive alternative.
After all, a blanket tariff on all the goods coming from a country is a type of economic sanction. So a country who puts tariffs on the goods of every other country in the world is effectively feeling the impact of the first phase of conflict, when allies come together and enact trade barriers with a country. And why to countries band together to push economic sanctions on an adversary? To hurt their economy.
So TL;DR: Biden solar tariffs - well thought out and likely productive. Trump tariffs - pushing yourself in the face.
Not that, but a "first adopter curse" AKA path dependence: https://en.m.wikipedia.org/wiki/Path_dependence