MemCast
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#industrial-policy1#logistics6#manufacturing4#tariffs3
Tariffs act as instant taxes that destroy margins without building domestic capacity.
  • A tariff is levied at the port, forcing importers to pay a large tax immediately, unlike a gradual tax that can be spread over time.
  • High tariffs (e.g., 49 %) can wipe out thin‑margin businesses, forcing emergency loans or shutdowns.
  • The policy does not develop domestic suppliers; it merely shifts costs to consumers and erodes competitiveness.
  • Historical examples (e.g., US steel tariffs) show limited success and significant collateral damage.
  • Effective industrial strategy must go beyond tariffs to address the underlying supply‑chain structure.
Balaji SrinivasanThe Peter McCormack Show00:29:47

Supporting quotes

Quote
00:29:47
“Tariffs are instant taxes that destroy margins.” — Balaji Srinivasan
Quote
00:30:07
“Tariffs don't build domestic capacity.” — Balaji Srinivasan

From this concept

Tariffs and Industrial Policy Are Ineffective Without Supply-Chain Insight

Balaji critiques tariffs as blunt, instant taxes that destroy margins, and proposes data-driven industrial policy that maps supply chains to build domestic capacity.

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