All of this chaos has actually slowed down our US manufacturing buildout. We'd like to build US factories, but we're having to slow them because of the uncertainty. A foreign factory only has the uncertainty on the US import/export, while a US factory has uncertainty on all imports/exports.
https://fred.stlouisfed.org/series/C307RC1Q027SBEA
US Factory build out investment increased from $80B/year to $240B/year under Biden.
Trump's economic policy has managed to undo $30B of that so far, and the trend is accelerating.
> People are also having to intervene in once-automated tasks. Thousands of orders that used to auto-flow directly to the warehouse floor for same-day shipping now often miscalculate tariff costs.
Charge a blanket tariff fee like Mouser.
> Charge a blanket tariff fee like Mouser.
The importer still needs to pay the correct tariff.
Also, according to the article, a big part of the problem for is that Digi-Key does substantial business selling imported parts to non-US buyers. It’s fantastic for the US that this business can exist (money flows into the US and actual good jobs are created), but the tariff system makes is difficult to run this part of the business and there’s a lot of pressure to move those jobs and the revenue to a different country that doesn’t have this problem.
Your comments in this thread basically come across like you just read an economics 101 textbook and are now asking leading questions to continue your study. In reality, markets are computationally hard and path/structure dependent. Merely tweaking a few knobs to increase some incentive won't make something magically spring into existence. A lot of market "proponents" ironically miss this - if markets were not computationally hard, then centralized planning would also work!
None of those benefits of a price hike go to American workers. They get low wage factory jobs, not old school pension jobs, and all their stuff goes up in price?
Laughable. I doubt Americans won’t even pay 5% more to get stuff made in the USA.
I lived through Walmart systemically walking through the Midwest and destroying every bit of competition in its path. People looooooved to talk about how other people should “just pay $5 more!” to a local retailer and stuff made in the USA. But it was always for other people to do. Never underestimate the American consumers cheapness. If they can get more junk for less, they will do so nearly every time.
And this was in an era when there was still a large amount of manufacturing done in the US. The costs would no longer just be a minor 20% discount - they would be multiples since we lost both the capital investment in equipment and factories, the supply chains feeding them, and would have to spend a generation training up current high schoolers into skilled and semi-skilled manufacturing labor. Assuming anyone actually is willing to do those jobs these days.
Buying local became something for performative rich folks to do. Everyone else excused themselves due to “need” of some sort. Consumer preference was revealed and catered to - and now without severe great depression level pain it’s not coming back.
Tariffs would have helped 20 years ago, but here they're basically just a wistful dementia echo of something that could have been. Applying a policy that's decades out of date merely further strangles American industry. This article is a great example if you actually examine the details of the situation - Digikey is an input to the types of domestic manufacturing that actually employs labor, yet blanket tariffs simply make them even less competitive.
Just once I managed to get to some kind of manager who told me point blank "we won't sell this part to startups."
We created a service that blocks people from buying various parts using a ton of different complex business rules (one simple rule we had was we straight up didn't sell ANYTHING to the middle east for a while).
Startups were another business we didn't sell to simply because of the sheer amount of fake companies we got trying to work around our rules engine.
Alot of the rules for our service was mandated from the FBI. That was a fun call to reveive from them.
More subtle is that every dollar saved in buying components from China is more money for all of the forementioned.
For the same reason when small local businesses charge you a 3% service fee to use credit; they're not giving up that money because you wouldn't have been charged it otherwise.
The parent's point also applies to the companies buying product. Every dollar they spend on tariff line items is another dollar they're not sending back into the economy via expansion and wages.
It was cool to see them grow into a real competitor for the big distributors.
For china, the supreme court ruling was effectively a 5% reduction in tariffs. The situation remains dumb.
https://www.china-briefing.com/news/us-china-tariff-rates-20... (Url says 2025 but has been updated continuously)