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They're more likely to shut down the plants. The cross border system has been in place for decades. It is unclear if the tariffs are a short term or long term
by graeme 2y ago
They're more likely to shut down the plants. The cross border system has been in place for decades.
It is unclear if the tariffs are a short term or long term policy. If short term then there's no way to justify the investment.
So you have to wait until you get certainty. And then you need to build industrial plant, train workers. And crucially the new workers have to stop whatever work they were doing previously.
- bitmasher9 2y agoIf tariffs are long term it seems likely more of the manufacturing process will occur in the US, so long as sufficient raw materials can be sourced inside the US. If a foreign country has cheaper raw materials and cheaper manufacturing costs, maybe they will export manufactured parts. Of course, in the short term this is full panic mode, with the real potential for some manufacturing to be removed in US or retooled to meet new requirements.