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Because parts and raw materials come from all over the world.
If manufacturer sets up in US, he not only has much higher labor cost because of the tariffs he has to pay more for parts and raw materials.
If the manufacturer set up in UK or Singapore the raw material and parts escape tariffs. The finished product is exported to USA is charged 10% tariffs. This is cheaper than manufacturing the product in USA.
Because supply chains cut across the global and manufacturers needs parts from various countries it becomes a disadvantage to manufacture in USA because these parts are tariffed in US.
The tariffs actually kills manufacturing in US. It causes US manufacturers to have a disadvantage especially if they are manufacturing to export out of US.
For all parts and raw materials to shift production back to US also don't make sense due to labor cost and even if the whole supply chain can shift to US it will take decades.
The way tariffs are done makes zero sense if they want to bring manufacturing back. Tariffs cannot be across the board. If you want to bring back PC assembly back to US you levy only PCs made in other countries.and not the parts needed for the PC.
Trump and his team are incompetent people who will end up destroying the US economy because they really don't know what they are doing.
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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They can make America great again....the voters like it....
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The tariff rates can be adjusted. If certain raw materials they need and dun hv, ofc they'll do something
Trump and his team are graduates of top and ivy league unis, not that stewpig lah
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Trump’s first term is about supply chain and raw materials.
The reshoring of MNCs that require critical components back to the US. Remember there is a group that shift from SG to the US during his first term. It doesn’t end there. There are specific instructions given to these MNCs.
By looking at these tariffs he might have given up on the resources in this region.
He wanted Greenland for the resources.
(This post was last modified:
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theold.)
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Manufacturing back to US is just a cover lah.
The real deal is “robbed” the world to fund their spending.
醉翁之意不在酒。
60 stronger economy nations shd be able to survive in this tariff war if last for 2 years, the other 100++ nations will be grilled Chao Tar.
“Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"
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RiseofAsia.)
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First he already success in collect govt revenue.
For manufacturing to set in,
need to force fed to lower rate.
and to reach certain critical mass,
There are too many economies with manufacturing capabilities
compare 30 and 50 years ago, so he need to do to many of allies too.
So what looks totally reckless but got some kind of planning, he and his team cannot be without second plan.
Of course it will not be success, but at least weak hands will be forced out first.
(This post was last modified:
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watchfirst9.)
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It's not that simpur
Too many moving parts and most parts are rusty
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It is true only if the tariffs are casted in concrete. As the tariffs are set by executive orders, they can b changed anytime with reasons to suit the situation.
Trading Economics: In China, employed persons refer to who performed some work for one hour during the reference period.
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u r really gong gong. no wonder ur trades never work.
I hint to u :
The new factories in USA will not b labor intensive anymore, Musk will build fully auto factories for them la
Almost every major brands will cheong back to USA. Many like Apple already in meeting now.
Mark my words. And its from TianKor, remember that.
(This post was last modified:
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*天哥*.)
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