You've fallen for misinformation.
Countries aren't "ripping us off" in trade and the tariff policies you've been told about just aren't true.
Please notice that I used quotations around "ripping us off" for a reason. I was quoting the president, not necessarily siding with his sentiment. My summation of what the president means by "ripping us off" is the non-monetary barriers, which I will get into in a subsequent comment below.
Do you have any idea where Autel drones came from?
Touché. I should have cited:
- Skydio
- AeroVironment
- BRINC Drones
- Freefly Systems
- Teal Drones
- Insitu
- Vantage Robotics
- Draganfly
- Easy Aerial, or
- Vision Aerial
There is so much BS being spread around this issue.
The problem is that tariffs and the calculation of "effective tariffs" (via of ALL factors involving trade) is complicated. While there are literal tariffs on many U.S. goods going into China, there are other non-monetary trade barriers that factor into the entire "tariff pie" if you will.
I'm guessing you won't accept this, but if you really want to try critical thinking, here's an alternative to what you've been told.
I absolutely accept this. But the problem here is twofold:
1) Trump literally told us out loud in his own words how he was going to calculate the tariffs.
2) The video fails to mention these non-monetary barriers and actually seems to dismiss them. Here are just a few non-monetary trade barriers on U.S. exports going into China.
- Quotas and Licensing: China restricted U.S. agricultural exports through import quotas. Cotton faced a tariff-rate quota (TRQ) system: 1% duty within 894,000 tons, but 40% beyond it, choking U.S. supply. Licensing delays for U.S. biotech crops (e.g., GMOs) also stalled market entry.
- Sanitary and Phytosanitary (SPS) Measures: China blocked U.S. poultry with unscientific avian influenza bans (lifted partially in 2020 but reapplied sporadically), and rejected U.S. seafood over vague “health standards.” The 2024 NTE Report notes these as “arbitrary.”
- Subsidies to Domestic Firms: China’s subsidies to its agricultural and industrial sectors (e.g., $22 billion annually to farmers, per OECD) undercut U.S. competitiveness in China’s market, indirectly acting as a barrier.
- Regulatory Opacity: U.S. firms faced unpredictable customs delays and certification requirements. For example, medical devices needed redundant China-specific testing, adding costs and time.
- Forced Technology Transfer: U.S. companies entering China often had to share tech with local partners, a condition not formalized as a tariff but a steep barrier to market access.
Now, you seem like a smart guy, so I'm sure you're aware that this is just the tip of the "nuance" iceberg. So where do I stand on all this?
Q: Are the president's assessments of trade imbalance accurate?
A: Of course not.
Q: Are they fair?
A: It's hard to say.
Beyond these simple questions, talking heads and pundits ask consumers over-simplified questions, and then publish the answers:
OSQ: Are tariffs good for the U.S.?
CTA: Good for whom? Bad for whom? And for how long?
The stock market is in a state of shock due to volatility and uncertainty in this post-tariff world. Is this bad? Again, bad for whom? And for how long?
My 401(k) lost $3K this week. All my stocks went down. So you know what I'm going to do? I'm going to throw $20K into it Monday.
My point is that, because this kind of tariff strategy has never been tried before, I promise I won't celebrate the tariffs if you promise you won't panic over them. Personally, I think it will work (key word "think"), but in the long-term. In the short term there is going to be panic and volatility. Paraphrasing; "4% of the population owns 90% of the stocks." So the stock market isn't representative of your average Joe worker. Ergo, average Joe worker isn't going to panic over the Dow Jones. Realizing that a 401(k) is a LONG-TERM investment, I'm not going to panic. Not even remotely. Instead, I'm going to take advantage of the dips and BUY stock.
Will prices on goods go up? In the short term, most certainly. In the long term I believe the U.S. will benefit and as America gets stronger and back on its financial feet (pay down on the deficit), inflation will settle (maybe even DEflation for the first time centuries), and the economy will boom. I predict that whatever drone we end up buying in 2 years, we'll be happy with the price and/or the change of brand. Why? Because it will either be a cheaper-than-now Chinese drone or an American-made drone.
D
P.S. The fact that comments are turned off for the CBS YouTube video is very telling. One of the tenets of fascism is to oppress opposing viewpoints. Just sayin'...