4 ms·
> and not a single one mentions that the previous administration's trade war policies are still in effect, which means significant (10-25%) tariffs on many kind
by baybal2 5y ago
> and not a single one mentions that the previous administration's trade war policies are still in effect, which means significant (10-25%) tariffs on many kinds of raw materials and the equipment you'd need to build new factories domestically
I find it more surprising that even the 25% tariff is not enough to make American MNCs to move from China.
I am watching how the supply chain moves from China to South, and Southeast Asia. Koreans are moving to Vietnam, Japanese to Bangladesh, Taiwanese back home, and to Indonesia. But American companies in their majority keep clenching their teeth, and staying in China.
I guess, they really like it there
- rsj_hn 5y agoIt's not a 25% subsidy, it's a tariff. Moving to China would force the American MNC to pay the tariff on the full value of the product sold to the US market rather than on just the foreign components.