Government Subsidies and Tariffs: The Impact on U.S. Consumers
Transcript:
Douglas McIntyre: I’m going to look at this through the eyes of the federal government.
Part of their argument, and it may just be to support their decision, is these companies in China are subsidized by the government.
And that’s why they can charge $15,000 instead of $28,000.
Is that a reasonable argument to make about why you should put a tariff on a car?
Or is it like the consumer should be first no matter what?
Dave Callaway: Well, that’s a question for the World Trade Organization, to be honest.
It doesn’t sound fair, right?
I mean, you and I fly around the country all the time on US airlines, United and Delta and the like, and complain about, you know, why is everybody, you know, why can’t they be like Qatar Air or, you know, Emirates and stuff like that, which when you fly in Europe, is just this magnificent, wonderful experience.
That’s because they’re subsidized by their countries, right?
And so our airlines argue that that’s unfair, right?
So they don’t get to come here.
And that’s what’s happening in the auto industry too.
We don’t do, I mean, we do our own subsidies, right?
We’re doing subsidies in the Inflation Reduction Act for clean energy plants and the Europeans are complaining about that.
So it’s a larger philosophical question.
But again, it’s always the consumer that loses out in this situation.
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