This was part of Donald Trump’s campaign promises.
The logic is simple.
Foreign manufacturers are subsidized by their governments and very low labor costs, so they can undercut American manufacturers by dumping their products in the US. This tax is effectively a tariff, so it costs just as much for foreign companies to sell their goods here as it does for US manufacturers.
The reason many manufacturing jobs have left the US is because our manufacturers cannot compete in this unfair market. So this levels the playing field. By itself it makes it far easier to hire American workers and produce products here.
But the flip side is that this law will make it *cheaper* for US manufacturers to export their products. This means far more jobs for Americans.
Steve Forbes is being disingenuous here. He is upset that the wealthiest of billionaires won’t make as much money by investing in foreign companies with cheap labor, so they can dump in the US markets.
Initially, prices on many imported consumer products will go up. However, when American companies start producing and exporting, not only will tax revenues for the government jump up, but the cost of consumer goods made in the USA will go down.
Because Big Labor and Big Business are in cahoots.
Big Labor is one of the main factors driving up labor costs -- along with government regulations and taxes.
this law will make it *cheaper* for US manufacturers to export their products.
No, it won't. It will raise costs. There will be retaliation and it will hurt America's economy and the world's. It will drive prices up and employment down.