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Not if the goal is to bring back component manufacturing.
by tridentlead 8y ago
Not 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.