Trump explains his trade war strategy.....
#1

Looks like it goes like this. He js not going for those 10-20% tariffs but his intention is to simply block imports.

If you want to sell to Americans, he plans to force you to set up a plant in America

It looks like selective industry like EVs, maybe steel. Does not make sense to impose on industries that US does not already have. Also, there is no shortage of jobs given the current low unemployment so there is no need to bring back factories because there isn't enough slack in the economy to expand manufacturing jobs.

The US has over time replaced those manufacturing jobs with service sector jobs. American companies prefer to set up factories in Mexico to pay lower salaries. Why  Americans want to work in a factory when they have jobs like marketing retail, etc. He expects Americans to go and downgrade to be factory worker?


I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#2

Good luck to him. Unless he makes everything in house, manually by hand, he will still need to import the components, parts, tools, machinery, robotics, etc. That’s the reason US companies find it difficult to leave China. It’s the supply chain embedded deep in their manufacturing sector. To replicate this supply chain in another country will take heavy investment and maybe more than a decade.
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#3

Can American used to razor thin margin?


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