“If we picked up stakes and moved out of China, it would literally fold financially.”
That seems to be the plan.
President Trump first had to prepare the battlefield, before imposing tariffs on the communist Chinese. The USA had to be made competitive to attract the business displaced from communist China, through tax cuts and de-regulation. The gaping back doors through NAFTA and the EU, that would have allowed the communists to avoid tariffs, had to be closed. Now the conditions have been set.
Now the tariffs on communist China are being rolled out. First, 10% tariffs were placed on just 10% of Chinese imports - a warning to all. Three months later, the President (this week) directed expanding that to 50% of Chinese imports. He also directed that the process be initiated to prepare to expand that to 100% of communist Chinese imports (which takes about three months for public comment).
So next year, 10% tariffs will likely be in place across the board. They could be cranked up to 20% (or more) in the same manner. Companies are already planning to shift production elsewhere. If they don’t, 20% would likely force it. 30% is just another number the President could sign.
Tariffs simply work. It’s math.
We are the only major economy that does not substantially use them to protect our industry, and predatory communist China has exploited that vulnerability.
The application of significant tariffs will simply force the realignment (and likely communist Chinese financial collapse) that you mentioned.
Next year is on track to be the first year of real realignment, as the real control measures (tariffs) are just now being applied.
Get your popcorn ready for the show.
Thanks for your comments. They were interesting.
They sound reasoned, and as you state, now to sit back with the popcorn.