As he summarizes it, sounds like a reverse tariff. Is that right?
IMHO, in some ways a tariff is like a fair tax (sales tax), which some of us on FR have advocated for. Of course, when we call for that, we always say it should replace the income tax. We never want it to be both taxes.
But on the other hand, how often is the end consumer paying the tariff? Price is set by supply and demand, not by what goes into bringing the product to market. I don't see how the tariff can impact demand. But can some tariffs impact supply (if the tariff makes the cost to market too much for some suppliers to stay in business)? I guess there are some products for which that would happen (thus the tariffs do raise the end consumer's price). But if Trump's tariffs cause some countries to reduce their tariffs and import restrictions, and we therefore remove or greatly reduce the tariff on our end, then the end result is more free market.
As he summarizes it, sounds like a reverse tariff. Is that right?
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That’s my take.
On the other hand—what’s going to happen is that ai revolution will create advanced robotic factories with digital twins that will collapse the cost of manufacturing across the board.
The USA is going to enjoy a structural manufacturing advantage over much of the rest of the world for a couple decades before they catch up —if they can catch up—because these factories will be continuously self improving.
If Trump does this right—then what he will do is invest federal resources into making ai factories and their digital twins available to as many american industries as possible in the next 24 months.
Why the urgency?
Sometime between 12-24 months from now, AI is going to become self-innovative. It will self-improve both itself and any manufacturing process it is involved with.
AI will both continuously improve a machine or tool and constantly improve the manufacturing process by which the machine or tool is created.
If Trump has the good sense to get as many American companies to the starting gate as possible—then heck yes— the federal government deserves a commission for the output when American companies get into the export game at substantially lower prices than their competitors worldwide.