From your simplistic writing, clearly you’ve never studied economics.
Did you ever learn about basic concepts of pricing models are influenced by supply and demand?
I don’t have time to explain it to you further, but I will say one thing:
You’re ignoring the fact that markets are dynamic. If you think Vietnam and other cheap manufacturers will keep their prices low if we divert our massive buying power from Chinese products, I’ve got a bridge to Mars to sell to you.
It would be like turning a fire hose of demand on these smaller countries’ markets. Of course their prices won’t stay cheap.
You owe me a note of appreciation for schooling you on this topic.
So you think that Vietnam etc will instantly give up their advantage so that they can give the manufacturing back to China? My, yours is a dizzying intellect.
Hint: Prices will likely rise from current levels... BUT not enough to give up their newfound markets. You left that out of your analysis, which is why it comes up short.
You owe me a note of appreciation for schooling you on this topic.
Ahem.
Enough with the insults. I subscribe annually to daily financial briefs and am very well off. I don't need your schooling. The trade war against China is a nothing-burger compared to far more critical financial crises on the horizon. For instance, the CAPE ratio is extremely high, nearly the highest in history, incredibly overpriced stocks, more so than 1929, 1987, and before the mortgage crisis of 2008. I'll be pulling back from the market prior to 2019 when it blows. Check out the Composite Liquidity Indicator (CLI), the market is overextended. And so on. I'd worry more about situations like these than anything the Chinese market is doing with tariffs.