Told someone that tariffs weren’t an efficient method of American job creation because companies simply pass on the cost to the consumer, which ultimately results in higher prices and less job creation. However, they countered by explaining how companies don’t have to pass the cost onto the consumer and how Apple decided to decided to move production back to the USA.
So is Apple moving production back to the USA evidence that Trump’s tariffs are working?
Does Apple changing their logistics by moving back to the USA in response to Trump’s tariffs prove tariffs are efficient in creating jobs?
byu/kaiser11492 inAskEconomics
Posted by kaiser11492
1 Comment
1. The 2018 tariffs, which were much more targeted and could be argued to be used as a job creation (rather than revenue generation or trade deficit mitigation, as what seems to be the goal of the 2025 ones), did not create jobs. https://www.nber.org/papers/w32082
2. Sure, it’s *theoretically* possible that the tariffs induce some manufacturing reshoring back in the US. But pretty much all the models (Yale, Tax Foundation, BIS) find that aggregate unemployment will increase.