The problem you describe is reasonable. But this tariff is worse than doing absolutely nothing about it.
Companies have three options:
1. Do nothing in the US except [perhaps] selling the finished product, and use whatever components you want.
2. Use chinese components in US manufacturing.
3. Assemble in the US using no Chinese components.
Given the scenario you've described, presumably #3 > #2 > #1. And right now, almost everything is taking route #1.
So what does this tariff do for companies currently taking route #1? The tariff doesn't affect finished products, so there's no direct impact on them.
If they want to move something to the US, they'll find themselves in #2, the group that's hit with the tariff. Is it a good thing to discourage that?
It also discourages products that are currently america-only from adding chinese components. That might have prevented today's situation if it were enacted in 1980, but it's pretty much irrelevant today.
Companies have three options:
1. Do nothing in the US except [perhaps] selling the finished product, and use whatever components you want.
2. Use chinese components in US manufacturing.
3. Assemble in the US using no Chinese components.
Given the scenario you've described, presumably #3 > #2 > #1. And right now, almost everything is taking route #1.
So what does this tariff do for companies currently taking route #1? The tariff doesn't affect finished products, so there's no direct impact on them.
If they want to move something to the US, they'll find themselves in #2, the group that's hit with the tariff. Is it a good thing to discourage that?
It also discourages products that are currently america-only from adding chinese components. That might have prevented today's situation if it were enacted in 1980, but it's pretty much irrelevant today.