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> if worse comes to worse bring manufacturing back to the US If these tariffs are on components and not manufactured goods, then it seems like it would push ma
by mcphage 8y ago
> if worse comes to worse bring manufacturing back to the US
If these tariffs are on components and not manufactured goods, then it seems like it would push manufacturing into China, not bring it back to the US.
- tridentlead 8y agoNot if the goal is to bring back component manufacturing.
- mcphage 8y agoWho’s going to buy the US-made components if the manufacturers that use those products have already moved to China because of the tariffs?
- yellowapple 8y agoProbably those same manufacturers, depending on whether the added labor premium is less than the cost of shipping finished goods across the Pacific.
- HeyLaughingBoy 8y agoAs a first-order approximation, transoceanic shipping is essentially free. A quick google gives me $5,000 to ship a container from China to a US port. Considering the volume that a 40' container can hold, yeah, that's pretty much free. Compare that to even cheap US labor rates and it's a no-brainer.
- systoll 8y agoThe stated goal only matters insofar as it affects the policies that are created. In 2018, it's a whole lot easier to avoid doing any manufacturing in the US than it is to avoid using any components made in China; and both approaches avoid the tariff as written. If the goal is to bring back component manufacturing, they need to go back to the drawing board.
- 0x0 8y agoMaybe.... that is the purpose? These whole shenanigans are quite transparent, really, aren't they?