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Until there are alternatives. When the price of a given product increases, it becomes more attractive for competitors to invest in making that product.
by bitshiftfaced 1y ago
Until there are alternatives. When the price of a given product increases, it becomes more attractive for competitors to invest in making that product.
- rsynnott 1y agoEven if companies are convinced they need to manufacture stuff locally (ie they believe these tariffs are never going away, whereas in practice you'd expect that, at absolute most, they're gone within four years, likely two, and maybe within weeks), you're talking about years to build up production capacity. China is likely taking the (reasonable) view that US consumers won't put up with years of higher prices.
- UncleEntity 1y agoSure, unless they flip-flop on tariffs and make your investment not as attractive as it initially seemed. People assume there's going to be massive investments into what is essentially an uncertain market. A reversal of the capital outflows of the previous decades or something, dunno? Why, exactly, would people from other countries chose to invest in the US when they could just keep their investments at home and/or engage with more reliable trading partners like the EU, South America or Asia?