Major carmakers sue US government over China tax

US-based car makers have filed lawsuits arguing that US tariffs on imports of Chinese car parts are illegal, reflecting the fact that components are now more expensive than previously, making manufacturing more expensive.

Of course, were US parts perfect substitutes, this would mean that the tariff simply increases costs for these companies, itself a welfare loss. The fact is that they're not: they're lower quality. And as a result, if producers still import Chinese components rather than US-made ones the net effect of the tariff isn't to protect any jobs either.

Proof of the lack of economic arguments for tariffs being imposed in the first place.