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That makes building the factory in the U.S. the safe choice whether tariffs are implemented or not.
by rayiner 2y ago
That makes building the factory in the U.S. the safe choice whether tariffs are implemented or not.
- Aunche 2y agoHow is it safe to spend all this money on a domestic factory just for it to be cheaper to import everything anyways? The safe choice is to hoard cash and inventory until they have certainty of whether tariffs will happen or not. All Trump is doing is creating unnecessary deadweight loss when he can just negotiate without threatening a suicide pact.
- lostdog 2y agoThe safe choice is not to build the factory. Even if you build the factory in the US to avoid tariffs on the goods you sell, did all your inputs also get built in the US? Are the tariffs on your inputs going to wipe out your profits? To build a factory you want to predict out the cost vs benefit. But if the costs are highly uncertain, then the numbers in your spreadsheet fluctuate wildly. So you just sit on the money you have and wait to build the factory until things are more certain.