Comment Re:Thank Tariffs Trump! (Score 1) 46
But how are the tariffs limiting the manufacturing supply capacity of RAM factories in East Asia?
Do you have a mechanism to propose?
Do you think they're making enough to meet demand but then blaming tariffs to justify jacking up prices? All of them? It would be an interesting conspiracy but is there any evidence to support that theory?
Tariffs will cause manufacturers to divert supply to countries that have the lowest tariffs on their product exports. This is what Canada is doing in any way they can including (as of this week) the construction an oil pipeline to the Pacific to serve Asian nations.
This will reduce the supply of their products to nations with the highest tariffs. This also provides them with better market certainty, than a nation that breaks existing trade agreements on a whim (like a commercial accurately quoting Ronald Reagan) to raise tariffs at the whim of a single individual.
If you trade with the US there is no certainty for any nation in how much their previously popular products will be penalized or the when or for what reason.
Manufacturers want reasonably predictable sales volumes with trading partners with trade agreements that will be kept. Otherwise, they will find such partners elsewhere.
Thus the US likely now ranks lower than any other trading partner *if* not absolutely necessary move existing product. And if a manufacturer is dependent on US imports, they are looking for new trading partners that provide stability as they reduce exports to the US.
This is basic human relations and economics. You only work with someone who bullies you and does not keep their agreements if you absolutely have to.
And the rest of the world does not. They just need time to re-align to working together and cutting the unreliable US out of their critical export planning.
The US is now the trading partner you want to get away from (like Canada is working on) if you can.
Foreign made products that have import tariffs higher than the worldwide average will reduce shipments if their manufacturers are able. This will increase US domestic prices for their products and create shortages as those foreign manufacturers move their exports to more friendly markets.
While US importers and distributors will increase the prices of such imported products for all consumers whether US manufacturers or individual consumers.