World

Are the tariffs bringing any companies back to America?

These are plants in Mexico. There are thousands and thousands of them- all modern, all using the latest robotic technology. They cost trillions of dollars to build, and most were built in the last 2 decades. That means the investments these companies have made in Mexico have not yet been paid off.

Now the Stable Genius expects those plant owners to abandon these huge investments and built the same thing in the U.S.

First of all, they need to know that the tariffs are going to be permanent, or for at least the next four decades- otherwise the investment made in the U.S. in order to avert the tRumpf tariffs would be a waste of money.

They will have to charge MORE for making the same products they made in Mexico because of the huge amount of money they have invested and walked away from, and the more costly labour market in the U.S., and in some cases, they will have to pay more because of import tariffs on certain commodities they will need to import in order to make their products.

Now, if you were a CEO or a board member of one of those manufacturing plants in Mexico, would you be jumping to make a move to the U.S right now? No, I thought not. You will ‘wait and see’ what happens to tRumpf and his silly trade war. The guy is old, he has dementia; can he even last for the next four years? He is wildly unpopular already after just 72 days in office.

He is drowning in scandals because he has chosen incompetent people whose only qualifications were their loyalty and possibly their status as a FOX news celerity. He has to get through the midterm elections and retain a majority in the House and the Senate. Will he become a dictator, and if so, would I want to own a factory in a country that is not a democracy?

That is a lot of ‘ifs’ before I would give much thought to his plan to ‘force’ my company to relocate.

So bottom-line, other than a deal that Biden made with a Taiwanese Chip and conductor manufacturer last year, I do not see a lot of big manufacturers moving back to the U.S. for some time.

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