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In reply to the discussion: Sen. Josh Hawley introduces bill to send tariff rebate checks to Americans [View all]cadoman
(1,549 posts)We (rightly) aren't concerned with inflation being a consequence of increasing taxes on the rich, so why would we be concerned with a modest taxation on imported product that is disproportionally produced/harvested/mined using slave labor? These products are marked up massively before they reach store shelves.
A manufacturing worker here, in a well regulated and safe environment, with a variety of insurances and benefits and protections, of course can't compete with unsafe slave labor overseas without some sort of economic incentive to keep that production here. That incentive can be a tariff.
You say you are doubtful they would absorb the hit, but here's the thing: they already have and most people didn't realize it because the news wasn't blasting it out. Part of the hit is also absorbed through a reduction in currency manipulation--another critical variable that is frequently ignored.
Some of the cost does show up in price (usually low single digits), but that's exactly the intent: give domestic manufacturers a bit of an advantage to encourage production here.
And for Lululemon the cost of those britches is gonna be single digits, not $30. They could pay a 1000% tariff and still be highly profitable.
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