Part 2/9:
Schiff began by addressing the common belief that tariffs might aid in reducing the U.S. trade deficit and re-industrializing the country. His analysis, however, diverged from this optimistic viewpoint. While he acknowledged that tariffs could indeed make imports more expensive—thereby potentially diminishing consumption—he emphasized that the underlying infrastructure and labor capacity necessary for increased domestic production simply do not exist. The U.S. lacks the regulatory support, skilled labor, and manufacturing capabilities to fill the void left by imports.