Businesses are not going to move manufacturing from overseas to the US because of Trumpwad's tariffs.
To do so would require investment.
Investment requires (smart) people to do analysis. It also requires stability + sustainable cost advantage.
Today businesses do not see either in US. 1/
To do so would require investment.
Investment requires (smart) people to do analysis. It also requires stability + sustainable cost advantage.
Today businesses do not see either in US. 1/
Comments
As a result, CEOs do not believe tariffs are permanent. Prevailing view: tariffs will disappear when Trump finds a new shiny object or he leaves office. 2/
To start, Americans do not realize the scale.
The plant that makes iPhones employs 300,000 workers.
How many cities have a pop greater than 🤔
Pop. China USA
10M 18 0
5M 29 1
1M. 140 10
3/
Did I mention, the average hourly wage in the Foxconn plant is ~$3.50/hour?
Where in the USA are 300,000 unemployed Americans looking to jump all over a job for LESS than $3.50/hour?
Maybe if we turned N. Dakota into a work camp. /4
China is no longer the low-cost leader when it comes labor rates. Labor rates in Asian are up to 60% lower than China.
So, again, those jobs are not coming to a cornfield near you.
/end