The Trump tarifff has China boxed in.
It will only get worse for Chinese manufacturing.
The Trump tarifff has China boxed in.
It will only get worse for Chinese manufacturing.
…
Don’t disagree. However, I wonder what the plan is for some of our most commonly used pharmaceutical drugs that come from China. I know, some products should have never been allowed to be produced over there.
I agree for the most part. We have the leverage because we import so much product from China. It’s not just Walmart. It is all sorts of supply chain that what our manufacturing and assembly (that we do have left) require. Those corporations who focused in the past on cultivating domestic sourcing are going to have a huge advantage in the near term, although they are going to find that (unless they have contracts), the domestic supply is going to get more expensive due to much higher market demand from existing domestic manufacturers.
There are a lot of people who complain about the tariffs and whine “They can’t just build plants and hire people overnight”.
Well, yes they can. Some of them. Not all domestic manufacturers were operating at full capacity in the past. They have to retool for increased production.
And yes you can hire help virtually overnight. The trick, of course, is actually paying well enough.
Here is how we don’t necessarily have China boxed in. Not from their point of view. They can still trade and export to the rest of the world, and if their supply rises, their prices will drop, so importers from other places than the U.S. will likely want to take advantage. Overall it’s not great for China, because they will be making less on their goods, but it may not be a complete face-plant that some people are predicting.
Yet, from our point of view, it should still accomplish the objective, which is that the cheap imported goods are cut off, or at least not cheap anymore, so even if the “trade war” virtually stops almost all of the trade, it should still encourage domestic growth (which unfortunately also comes with inflation)
Plus, we “just” discovered a massive lithium deposit. Before this, China was the major source of critical lithium.
My bet is that the good guys knew about the lithium for a long time, but “just now” announced it.
I’d say the odds on Chinese military aggression, somewhere, are going up.
They just upped US Tariffs to 84%. Look for ‘Dollar Tree’ to now be ‘Two Dollar Tree’ in the near future. ;)
That’ll teach us! *SMIRK*
MAGA! :)