When did we start imposing Corporate taxation and income taxes on foriegn corporations and employees in foriegn lands? The fact is that foriegn companies produce goods cheaper then we can here, therefore they offer their products for a cheaper price already. That is why their market share keeps growing, while the US mfg. companies are seeing the decline.The point is that even if the 22% drop in producer prices were true, that's goods manufactured in the US, not services and not imported goods. So even if it were true, and producer price drops were passed on 1-to-1 to consumer prices, the drop in the price of all our consumption would be much less than 22% because US manufactured goods are only a portion of our consumption.
Wouldn't the foriegn produced goods be forced to lower their prices accordingly? Beleive me, the foriegn producers are not selling for the lowest possible cost today, they are selling just cheap enough to undercut their competitors prices. If their competitor lowers prices, they will be forced to do the same or sacrifice their competitive advantage.