this post was submitted on 09 Nov 2024
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Big enough manufacturers will keep producing the individual components in China, then ship to a nearby country that’s not under tariffs to finish the assembly and ship from there.
So it’ll create jobs, alright. They’ll just be overseas.
As for the slavery… If you think you can get a slavemaster to ease up on his workers by forcing him to cut costs, you gotta go back to Econ 101.
Ding, ding! Yup, that's just what it's going to happen and under Trump's proposal, will still be hit by a blanket tariff.
Also even if they do move manufacturing to the US, we don't have the amount of raw materials so that would have to be imported under those same tariffs and prices would go up because labor is more expensive and we don't have that manufacturing expertise, that's not the US's competitive advantage.
Case in point:
https://arstechnica.com/tech-policy/2023/07/tsmc-delays-us-chip-fab-opening-says-us-talent-is-insufficient/
I mean seriously, America keeps playing itself.
The wonders of arbitrage.