this post was submitted on 09 Apr 2025
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The funniest thing about this is, if you're a US manufacturer with a lot of inputs from China and you're selling to a global market, the smartest thing to do now is very likely going to be moving your manufacturing outside of the US.
Does that prevent any tariff hits?
Asking as someone not sure what happens to the American/Texas international mega corp that owns the manufacturing plant I work at in Alberta.
Exporting TO the USA will still suck, as I understand. Even if they're an American company? Idk. The corpo bots say so anyways. China economy is/was stagnant, so there isn't actually any room to expand market there is what I was told.
idk I'm expecting layoffs, plant closure, or the plant goes Canadian owned. They tried being privately owned a couple decades in the past but, it was difficult for them to network sales.
It's a risk I knew existed, manufacturing is so fragile.
It prevents tariffs on inputs, which lowers costs of goods sold for products sold outside the US. Goods sold into the US would still be tariffed, but if the inputs are largely from China, it would still likely be cheaper to manufacture outside the US, not pay the 125% tariffs on inputs, and deal with the lower tariff rate into the States.
I mean, if your costs on inputs are going to go up from 125% tariffs by being in the US, but you can manufacture somewhere that the US is only charging 10% tariffs, it's a strong incentive to move manufacturing to that low-tariff destination and only face a 10% tariff on what your selling.
What works for any specific company would come down to their own mix of inputs, target markets, and other factors.