The difference between 10% and 25% tariffs, is basically the difference between tightening the belt, or moving production offshore.
25% basically gets the job done. Anything much higher would just magnify the undesired cost hikes to the consumer, that will occur in the items that are slower to substitute to other suppliers, for whatever reasons.
Some percentage of the companies on the next list (the final $325 billion of exports to the USA) are already planning their move, rather than waiting to get hit flat-footed. The suddenness of this round will spook some of those waiting to see if the ax will fall on them next. Everyone’s calculations now consider it more likely that the next round could be applied.
This round is going to hit the Chinese economy hard. Its the year of the pig, and we are going to hear some squealing.
Pleases me no end that companies who’ve brushed off almost three years of Trump saying this was coming will pay the most.
3 years isn’t a long time to change suppliers, but it’s not an undue hardship either.
I disagree, but thanks for your response.