When they increase the cost, then people start making things again. This is exactly what happened when the Japanese dumped cars in the U.S. They sold quite a few. Then, they had to increase the price and the others were able to sell again. Obviously for those markets where you need a lot of investment to create a product, e.g., silicon chips, there may be a case for preventing dumping. I don't think there is that much of a case for stupid plastic trinkets from China. If anything is hazardous to public safety and health, that product should be banned. Having that made by an Indian firm is not going to make the product safe. You are conflating different things. By all means stop fentanyl trade if you can. Putting tariffs on the Chinese or anyone else is not going to take the product away.srini wrote: Mon Mar 24, 2025 6:27 pm I completely agree with Arjun's point about distorted trade of China. @Prasen, China doesn't subsidize the bill "For ever", it only does so until global supply chains shift their balance towards Chinese manufactured good,and the local companies in the process will die a natural death and then Chinese companies start increasing the prices enjoyng their monopoly. There are several examples of Chinese dumping like stray chinese manja used in Kite flying slitting throats of several children and bike riders in India, and toys like Fidget spinners marketed as anxiety relievers actually work the other way around, and most of the Chinese production juggernaut depends on exporting toxic,health degrading alternatives to the genuine products ex : Cinnamon Vs Cassia (also called Chinese Cinnamon).I can go on and on about such products but to summarize "Just because something is made available cheaper may not necessarily be cheap in the long run" due to the cost we incur on health by consuming such stuff.All such "unrestricted dumping" not only shifts the trade balance in Chinese favour, but is hazardous to public safety and health. So it's better to realize there is no such thing as "FAIR" trade and negotiate separate mutual trade agreements with countries case by case giving the local concerns of health,safety and employment intrests paramount importance. Fenatyl drug poisioning can never be accepted as Free and Fair trade!
Tariffs are a tax. It is levied on your citizens and used to prop up industries in your country. It is redistribution of money from a lot of people in a country to a few (who own the industries). The only case where tariffs make sense is if it is on social vices like cigarettes, petroleum, etc. and I am fine with that. If there are environmental reasons for not buying from somewhere or child exploitation, etc., then just ban those products from those countries or put a targeted tariff. Beyond that, taxing your citizens to channel the money to some industraliasts who are your preferred buddies is not good policy.