Tariffs on Baby Formula Returned. So Did the Shortages.
Huh, what a wild coincidence.
When supply chain issues caused a baby formula shortage last year, Congress (eventually) cut tariffs to help get more formula onto American store shelves.
It worked! Imports of baby formula soared during the second half of 2022 after tariffs and other regulations were lifted. Stores reported lower out-of-stock rates and news stories about panicked parents being unable to feed their infants abated. In short, the government removed economic barriers and the market solved the problem.
Then, the government put those barriers back in place. On January 1, the tariffs on baby formula returned. Now, so has the crisis.
"It's getting harder and harder" to find baby formula, pharmacy owner Anil Datwani told Fox News this week. "[Mothers] go from one store to the next store to the next store" looking for baby formula.
Meanwhile, some consumers are complaining on social media that prices for baby formula have suddenly spiked and availability is once again a problem. A Forbes investigation into a recent increase in the price of Enfamil baby formula noted that the increases "follow the expiration of the U.S. government's suspension of infant formula tariffs in January, which opened the door for formula (both foreign and U.S.-produced) to become more expensive." (Another contributing factor: Reckitt Benckiser, the British-based company that owns the Enfamil brand, issued a recall in February affecting about 145,000 cans of formula.)
Because that's what tariffs do, of course. They are import taxes that protect domestic industries at the expense of domestic consumers, who are subjected to limited supply and higher prices as a trade-off for industrial protectionism.
"Families who use imported formula aren't the only ones who suffer because of these taxes," because the tariff-induced price increases create an opportunity for domestic producers to raise prices too, explains Reason contributor Bonnie Kristian in a piece at The Daily Beast. "For instance, if tariffs make the price of European formula go from $24 to $30 a jar, U.S. producers that might otherwise have charged $25 can hike their prices to $27. Even with the 'cheaper' American option, you're paying more."
It's obviously a bad deal for consumers, but one that's often invisible. The baby formula shortage has changed that and made the costs of this specific trade policy readily apparent.
It has also revealed the ways in which special interests pull the strings on many protectionist policies. In this case, it was the dairy industry, which benefits from the anti-competitive tariffs and other regulations that effectively prevent foreign baby formula from being sold in America. As Reason reported in December, the National Milk Producers Federation pushed Congress to reimplement the baby formula tariffs, arguing at the time that "the temporary production shortfall that gripped American families in need of formula earlier this year has abated."
Except, obviously, it hasn't.
Meanwhile, on Tuesday, the Food and Drug Administration (FDA) announced new plans to "increase the resiliency of the U.S. infant formula market," including new regulations, more inspections of manufacturing facilities, and an expedited review process for new products seeking to enter the market. The FDA also promised to examine "other factors that may influence the infant formula supply, such as tariffs and market concentration" but did not promise to take any particular steps in that direction.
The timing is convenient, as current and former FDA officials are being hauled before Congress this week to answer questions about the shortage and the agency's role in worsening it. The hearings are likely to once again highlight how the FDA's internal dysfunction led to delays in informing the public about the problems at the Abbott Nutrition plant in Michigan, which was shut down in early 2022 due to contamination, spurring the shortages.
The fact that the FDA has admitted it played a major role in creating the baby formula shortage in the first place but has steadfastly refused to hold anyone at the administration accountable for those mistakes should temper any expectations of positive changes.
The FDA has also backpedaled since the start of the new year. On January 6, it rescinded some of the measures adopted last year to allow foreign formula producers to sell their products in the United States. Now, only applications from foreign producers who intend to have a permanent presence in the U.S. market are being reviewed—potentially cutting off suppliers who might be able to help on a temporary basis.
More than a year after the baby formula shortage hit, the federal government is still struggling to figure out what should be blindingly obvious. Want a more resilient market? Let more producers compete on a level playing field—regardless of whether their products are made here or not.
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If Trump supporters had any principles they’d be applauding this. After all, it’s straight-up protectionism, and that’s what makes America Grrreat!
Ideas!
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Trump LUVS his tariffs! Make America Grate Again!
You don’t see the defenders of Trump’s tariffs defending these tariffs.
It’s almost as if they were defending the man, not his actions.
Principals, not principles.
This has been explained to you. So stop lying.
Also, why don’t you just officially admit you’re a pussy? You’re obviously afraid to follow up on your threats to me. So get it over with and admit it. You’re a cowering, spineless little pussy.
Tariffs good if Trump imposes them, bad of Biden imposes them. Got it.
Is Sarc giving you a drunken reach around today? You know full well Trump used tariffs as leverage to get trading partners to REMOVE their tariffs. Biden favors tariffs as a structural part of a American trade policy.
So there’s the difference. But this has been covered dozens of times before, so you knew that. You’re just another liar, like Sarc.
Seriously, do you REALLY want to do this with me?
Sarc admitted he was too lazy to read up on books I provided him regarding the use of game theory in economics, a discussion being had for 70 years now.
They truly don’t know anything beyond what can fit on a bumper sticker.
Tit for tat is a winning strategy in most gaming systems involving trade and economics. In AI competition the winning and most beneficial system is one involving some form of tit for tat. Who knew letting people rob you and you ignoring it was a bad strategy. But these idiots refuse to get past the bumper sticker.
Boehm is on the other side of this as he has admitted FDA and labeling regulations are what is actually stopping imports in other articles, but he aways retreats to blaming tariffs.
I expect both Sarc and Brandy to run away now. Sarc is a gutless coward, and I doubt Brandy wants to get slapped around.
Whats really hilarious to me is he has never once asked which strategies perform the worse in these scenarios. The altruistic algorithms that trade always regardless of past behaviors by other algorithms always do the worst as they get taken advantage of. The very systems brandy and sarc blindly advocate.
Bullshit. Trump’s idiotic tariffs damaged the manufacturing sector he claimed to be “saving”. He tore up perfectly good deals and replaced them with something worse. You have to be truly delusional to believe that Trump had any coherent plan, much less a good one.
If they were defending tariffs then they should be defending Biden from unwarranted attacks from Reason.
Cite?
Oh, I gave a tiny bit of thought to what you said about game theory, Master Baiter.
It would depend upon the players, politicians, playing correctly.
The odds of that are akin to those of winning the lottery without a ticket.
You can fuck off now.
Bye.
How did you know I brought up game theory if muted?
And little thought is correct. Because you’re too fucking lazy to actually read a book and learn something.
You dont need to know who the players are, just the actions of the players you retarded fuck. That’s what the AI economic competitions are about. It allows algorithms designed to lie cheat and steal and react to knowledge of the actions taken during the exchanges.
If you spent more time educating yourself than you did playing victim you might be interesting to discuss something with at some point. But you have no intellectual curiosity.
Find a single citation of these assertions.
For a group of leftists who always want proof their leftists, you sure make up your own bald assertions.
The nutty far left is every bit as supportive of the stupid trade protectionism as Trump is. Biden isn’t the free trader that Clinton and Obama were, and we are now paying the price as he is willing to coddle the nutty far left on things like this.
The Smoot Hawley tariffs ended world trade and helped lead to World War II and the Holocaust. Trump is too stupid to realize this. His supporters, the same. Biden is smart enough to know better.
Lol. “Biden is smart….” Wow.
Lol. Smooth-Hawley didn’t even lead to the depression a decade earlier, let alone WWII and the Holocaust you historically illiterate fucking clown. You’re bad at this regardless of how many socks you employ, shreek.
Hahahahahahahhaahah
Trump said he’d remove ALL tariffs for countries that did the same.
If they will not disarm, it is asinine for us to do so.
Why? Tariffs are as harmful to the country imposing them as they are to the imposed on.
It’s game theory, bro. In order to get to free trade you must tax your own citizens for foreign goods.
Uh huh. The point is to curtail exports from the offending country. Which is a valid tactic in leveraging better terms in a trade negotiation.
You don’t get freer trade by raising tariffs. If other countries want to subsidize Americans, let them.
Wrong and stupid. If your opponent insist on punching himself in the nuts, it doesn’t make any sense to respond by punching yourself in the nuts.
He’s such a pushy he mutes everyone that shows him to be a hypocrite or wrong lol.
I’ve been calling him out since he threatened to beat me up back in January. He always runs and hides whenever I bring it up. I suppose he finally figured out he’s too stupid and weak to go up against me, or much of anyone here.
Too poor. He once admitted he has never traveled outside the state or has rarely done so. Why he was shocked by Cuban sandwiches. Also explains his general ignorance of life.
He challenged Tulpa to a fight and then tried to play it off by inviting him to a Ministry concert. His drunk-ass bitch mouth writes a lot of checks his pussy-ass bitch body can’t cash.
So someone challenged you, Tulpa, to a fight.
The point is that your pal Sarc is a total pussy. Like every leftist.
Yes it does. And he continues to hide from me.
Tariffs never existed before trump in sarcs world.
Tariffs aren’t the issue here, it is the FDA regulations and labeling requirements that disallow the import of formula from most countries. Full stop. Tariffs could be 1 million dollars a container and it wouldn’t allow the formula in due to other regulation issues.
From the article: ” On January 1, the tariffs on baby formula returned.”
Hey towering intellect JesseBahnFuhrer: Who pays the tariffs? Are YOU paying them all? Will you pay yet MORE, and NOT complain about it?
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You are expecting people to actually read an article before commenting?
You are expecting people to actually read???
I couldn’t discipline myself to read more than 3 words of your comment, BUTT… Butt I will now pronounce judgment upon thee and thy comment! Now where was I… I will have to go and consult with my good friend, Captain Short-Attention-Span Avenger, and will get right back to you…
However, the Chinese simply slap an ingredient label on the product and deliver it. It costs them pennies and does not change their production methods or packaging except for those cans/bottles destined to USA.
If a foreign company want to play in this sand box, then they have to abide by the playground rules. There are VERY INEXPENSIVE ways to do this.
Also, all sales from foreign companies can be in US dollars and the BUYER pays tariff.
I agree that idiotic regulations are a problem, but tariffs are also part of the problem. Manufacturers in other countries aren’t even going to try to meet US regulations as long as tariffs make their products hopelessly noncompetitive. This is even more true because tariffs rise once imports exceed a fairly low threshold. It doesn’t make sense to spend time and money to get into a market where you’ll never be able to sell enough to be profitable. The correct answer is both to simplify labeling and reduce tariffs. Modifying WIC to make the market more competitive wouldn’t hurt, either.
Sigh. Learning, how does it work?
When tReason is mean to Trump about tariffs, it’s because they’ve got Trump Derangement Syndrome. That was the only possible explanation.
Now tReason is still ragging on tariffs, only it’s a different president from the enemy party.
Must still be TDS.
More lies. All because of your obsession with Orange Man Bad.
Ask, and ye shall receive wisdom! Knock, and the doors will be opened wide for ye! The pearls will yea verily be cast even unto the swine! Now it is up to YE, having been led to the water, whether ye will DRINK deeply, or if ye will just horse around!
Orange Man bad?!? He BAD, all right! He SOOO BAD, He be GOOD! He be GREAT! He Make America Great Again!
We KNOW He can Make America Great Again, because, as a bad-ass businessman, He Made Himself and His Family Great Again! He Pussy Grabber in Chief!
See The Atlantic article https://feedreader.com/observe/theatlantic.com/politics%252Farchive%252F2016%252F10%252Fdonald-trump-scandals%252F474726%252F%253Futm_source%253Dfeed/+view
“The Many Scandals of Donald Trump: A Cheat Sheet” or this one…
https://reason.com/2019/09/02/republicans-choose-trumpism-over-property-rights-and-the-rule-of-law/
He pussy-grab His creditors in 6 bankruptcies, His illegal sub-human workers ripped off of pay on His building projects, and His “students” in His fake Get-Rich-like-Me realty schools, and so on. So, He has a GREAT record of ripping others off! So SURELY He can rip off other nations, other ethnic groups, etc., in trade wars and border wars, for the benefit of ALL of us!!!
All Hail to THE Pussy Grabber in Chief!!!
Most of all, HAIL the Chief, for having revoked karma! What comes around, will no longer go around!!! The Donald has figured out that all of the un-Americans are SOOO stupid, that we can pussy-grab them all day, every day, and they will NEVER think of pussy-grabbing us right back!
Orange Man Bad-Ass Pussy-Grabber all right!
We CAN grab all the pussy, all the time, and NONE will be smart enough to EVER grab our pussies right back!
These voters simply cannot or will not recognize the central illusion of politics… You can pussy-grab all of the people some of the time, and you can pussy-grab some of the people all of the time, but you cannot pussy-grab all of the people all of the time! Sooner or later, karma catches up, and the others will pussy-grab you right back!
You know, The Atlantic has written a few articles in the 4 years since you started spamming that one.
So ancient history in now changed? Adolf, Stalin, Mao Tse Tung… All once upon a time, Saints upon the Earth, now?
Did he do that one bit of copypasta where he pokes and eeks about Trump like he’s an agitated retarded orangutan?
“tReason” … that’s good. I’m gonna steal that.
I’d give credit to whomever I stole it from if I remembered who they were.
Alcohol fucks with memory, short and long term. Should stop drinking.
Haha! Thanks, Lori!
You’re such a fucking clown Episiarch/Bo Cara Esq. You’ve seen that used at least 50,000 times before. It’s been a meme on this site since before account registration.
Well, usually it works like this:
You lie and deny reality for 3 years, then when the lies blow up in your face and become public you declare that we knew all of these things 3 years ago so it’s no big deal. You’ve “learned” a whole lot of things that way in the last 3 months alone, Episiarch/Bo Cara Esq.
It’s fine. I’m sure that this time we have a better handle on the Misinformation about shortages.
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When the price gets high enough USA will start being productive again. Something it severely needs to do.
When medicaid and government programs are 50% of the buyers, where is the incentive to produce?
+100000; Paid to do nothing. Charged to be productive.
What could possibly go wrong.. 🙂
Ever heard of comparative advantage?
Ever heard of a non-sequitur?
You self-admittedly couldn’t finish Economics In One Lesson. A 200 page book written at a 7th grade reading level and intended as a rudimentary primer on economics for people with no economic training whatsoever. Maybe you tackle that before you try to toss around some David Ricardo that you found in a wikipedia summary.
You mean and impoverish the middle class through the higher prices?
America seriously needs to stop trying to produce things that it can’t produce efficiently. Besides, manufacturing isn’t going to result in many more jobs anyway — all modern factories are automated.
The number of people employed full-time by Tesla and its subsidiaries came to over 127,800 at the end of 2022.
Tesla is known to have the most modern auto production facilities
Well yeah, they’re all really new. Tesla is a new company relative to the others.
There is this romantic notion that “Americans doesn’t make anything anymore!” and it’s totally wrong.
We produce more stuff than ever. We just don’t employ as many people while doing it.
But that doesn’t mean we don’t employ people. We do. Just not in making stuff. Machines do that. We design, program and maintain the machines. Much better job than production room drudgery.
We also tend to manufacture more sophisticated things, such as medical devices — and outsource manufacturing of simpler things.
That’s why we had medicine and ventilator shortages during the COVID hysteria when China cut us off a whole month, right Episiarch/Bo Cara Esq?
“But that doesn’t mean we don’t employ people. We do. Just not in making stuff. Machines do that. We design, program and maintain the machines. Much better job than production room drudgery.”
True. But it isn’t the same people getting those jobs. Designing, programming, and maintaining the machines requires intelligence, curiosity, and willingness to learn even when learning is hard work. There aren’t many jobs as flesh robots left for those who are unwilling or unable to put forth any intellectual effort.
The oracle of Dog Dick has spoken!
Remember when you welched on your mortgage, shreek? That was hilarious.
He’s AmSoc too?
Frankly the USA deserves this problem. We allowed our baby formula industry to change the entire world, we made everything here and shipped it globally.
Then Clinton moved everything to China and the Far East as well as SE Asia. So, we now want the product WE developed and sold the world on using and we don’t have it at a fair price.
I say 1. end the tariff EXCEPT any from China and a few other places. 2. Have a new way of determining PRICE GOUGING and making it stick. That way when a US company benefits because of international market issues they can not raise the price as well as benefit in market share.
Prices are information. They are the messenger. Getting mad at them and telling them they are wrong doesn’t make them wrong. It just hides information.
Which makes your seething about the necessity of Chinese Uyghur slave labor factories to keep prices from skyrocketing all the more mysterious.
Oh, wait, I get it. It only applies when prices go one direction.
” It just hides information.”
Like a 50% domestic tax and a ZERO imported tax?
China would have to double their prices just so US with it’s ABSURD tax rate could compete.
“Then Clinton moved everything to China and the Far East as well as SE Asia.”
Please explain further. He personally did that?
Granted them MFN status and had a colossal pay for play scandal involving Chinese nationals, Episiarch/Bo Cara Esq. That might be what Djea3 was referencing.
Is that in reference to the Loral Space/Johnny Chung scandal where Clinton gave our middle tech to the ChiComs? Or something else?
Clinton corruption is hard to keep up with.
Free-Trade which turned out to be Subsidized Trade.
USPS subsidizing shipping is the perfect example.
And there are many more from which that came from.
For F’Sakes; Domestic is paying well over 50% taxes and imports gets a free-ride? It should at least pretend to be ‘equal’.
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