Earlier quoted context omitted.
This is the only explanation that has made sense to me so far. And it makes even more sense based on these exemptions. https://www.instagram.com/share/_jW_V1hwM This is Senator Chris Murphy explaining it’s not economic policy, it’s an attempt to blackmail corporations into submission by making a deal with him in return for sanctions relief. Keep an eye out for what Apple and nvidia might have agreed to give.
These companies could choose to invest in the US instead and not have to worry about any of this. Tariffs are only usable as extortion if the companies have outsourced the manufacturing that gutted our middle-class. Externalizing variables comes with risk. This risk should be factored into planning in the future. Just because a politician in the 90s promised cheap labor through globalization, a president 30 years lat…
"Tariffs apply to imports, so produce locally instead".
The argument unfortunately has 2 flaws;
A) local production is expensive (which is why manufacturers fled decades ago.) If it is reintroduced here those goods remain expensive.
B) most things are not made in one place. Steel comes from here, electronics from there, energy from somewhere else, and so on. Even farmers use imported fertilizer, machinery and so on. Since the Tariffs are on "everything" (not just finished goods) they drive up the cost of local manufacturing even more.
A long-term strategy to increase local production makes sense. But it has to be done in a targeted way so as not to harm everything else. Typically it starts with finished goods, then slowly working down the food chain to improve the supply of parts making up those goods.
Exemptions on finished goods (like electronics) kills any gain. He might have, for example, exempted electronic parts. Which would then incentivize assembly to be local. Once you have local assembly you could look at say packaging, and so on.
The approach taken though doesn't lead to the outcomes being touted. Tariffs at country level are dumb. Excempting finished goods is dumb. Tariffs on things that can't be made locally (like coffee) is dumb.
That's before we talk about stability and certainty. For Tariffs to work you need both, and neither are in play here.