But price elasticity isn't infinite. A large part of the middle class would be priced out of most modern amenities if these would be produced domestically. Import substitution is one of these things that sounds nice in theory but tend to be highly damaging in practice.
This isn't necessarily true. A big factor when production comes back home is that so do the jobs that come along with it and that has a huge ripple effect on the economy that's difficult to evaluate, other than it being a very good thing.
> A large part of the middle class would be priced out of most modern amenities if these would be produced domestically.
Who said everybody would get to keep buying as much cheaply made foreign crap as before? From an environmental perspective that's arguably a win as well. Reducing both pollution from construction and transport.
That's a measurable qualify of life decrease as well for many people. Some things they just won't be able to buy anymore. Things they may require, but you claim its ok to go without because it helps the environment. Sounds dystopian.
> A large part of the middle class would be priced out of most modern amenities if these would be produced domestically.
Let's assume that this is indeed the case, consider why those amenities are so much more expensive to produce domestically? Mostly it's because of cost of labor - and that is expensive in US because labor has numerous rights and protections. So if we're not producing things here because they would be too expensive otherwise, it rather implies that those cheap modern amenities are subsidized by exploitation of cheap labor elsewhere. And we can do that because borders prevent free flow of labor from those places to here, while "free trade" allows for a free flow of manufactured goods. Which is already a very ethically questionable arrangement, but even leaving that aside, what happens when those other places catch up on labor rights (and cost)? We can't have an economy that indefinitely relies on having people impoverished elsewhere so that they can be hired for pennies to climb out of that poverty. Or, well, I suppose we can if we were willing to actively stymie those societies to ensure they don't catch up - which is even worse.
FWIW I don't think Trump's tariffs are a meaningful step to resolve this problem, and his motivations are certainly not concern for exploited workers. Nevertheless we can't just ignore the problem that he happened to highlight to his own ends.
