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> Manufacturing and extraction won't come back to the US unless businesses are convinced this is a long term change, not a bargaining point. I wrote that yeste
by Animats 2y ago
> Manufacturing and extraction won't come back to the US unless businesses are convinced this is a long term change, not a bargaining point.
I wrote that yesterday. Today, "Trump pauses Mexico tariffs."[1]
The Wall Street Journal is covering this heavily. Businesses have no idea what to do yet. WSJ article: "Trump’s Tariffs Usher In New Trade Wars. The Ultimate Goal Remains Unclear."
For now, you can't go to a bank and borrow to expand your US plant that needs some tariff protection to be profitable. Too risky if policy changes.
Can you insure against "Trump risk"? Hedge with futures?
[1] https://www.cnn.com/politics/live-news/trump-tariffs-presidency-news-02-03-25/index.html https://www.cnn.com/politics/live-news/trump-tariffs-preside...