HN Explorer

Ask HN: Do you think tariffs are about anything other than creating inflation?

1 points by dfps ↗ HN
Canada now participating, with 'retaliatory tariffs' instead of finding cheaper/more cooperative country options, hinting that the politicians there too just want to inflate.

8 comments

[ 1.3 ms ] story [ 25.3 ms ] thread
toomuchtodo
It’s about attempting to control the counterparty without military force (which the US has shown with Iran to be entirely ineffective for “the world’s most powerful military”). Note that the best this administration can do is bully, make threats, and self own.

(Canada is shipping oil to Japan now, and preparing for a trade deal with Europe)

https://www.sauder.ubc.ca/news/insights/werners-blog-canadas...

https://www.reuters.com/business/energy/canadian-oil-heads-j...

dfps
Is this AI generated?
toomuchtodo
From my profile:

(No AI is used to write any content within any of my comments)

All of my comments are by hand. Is there a specific fact or thesis you take issue with? If so, please feel free to point it out and I will expound and further factualize, if needed.

dfps
Is Iran ineffective or are the goals just other than stated?

(To reply to other statements in your reply, Canadians I know don't really have any new beef with the US and seem to have an issue only with Trump/White House (and are divided on support, like Americans are), but since 2028 might be more of the current Trump party it's hard to decide whether to plan for 2 more years or 6 more. Wouldn't a different US leader cause an immediate rapprochement?)

andsoitis
Yes.

Two core reasons:

- generate local industry

- punish others because they’ve taken advantage of us

I think they genuinely believe this, belying their lack of strategic and economically sophisticated ability.

So: I think it is an authentic motivation, but it is amateur.

olalonde
I just think politicians suck at economics and/or that the economy is of secondary concern to them. Even if they know a policy is economically unsound, they will still go with it if that's what's popular with voters.
dlcarrier
If inflation is the end goal, quantitative easing works much better.

Tariffs aren't about much else than taxes. Tariff wars aren't two countries trying to fight each other, they're two countries using the other as an excuse to raise taxes without calling it a tax hike.

dfps
Will citizens accept that more blatant form of inflation creation (QE) though? or do popularly elected politicians need to somehow create support or 'inevitability' for a workaround (trade war)?

For sure tariffs are a form of tax, but at what point is a tax revenue and at what point is it moreso just inflation?