Posted on 08/21/2019 12:42:04 PM PDT by BeauBo
Home Depot’s suppliers are trying to head off some of the increased costs from rising tariffs by moving at least some of their production out of China, executives told investors Tuesday.
“I’m not aware of a single supplier who was not moving some form of manufacturing outside of China,” said Ted Decker, executive vice president of merchandising. “So we have suppliers moving production to Taiwan, to Vietnam, to Thailand, Indonesia and even back into the United States.”
CEO Craig Menear said the tariffs on Chinese goods are projected to have a “cost impact” on U.S. sales of about 2%, or $2 billion. With suppliers moving at least some of their manufacturing outside of China, that reduces that impact to roughly one percentage point, executives said.
(Excerpt) Read more at cnbc.com ...
Tell them to move them to the U.S. to create jobs so we can get our middle class back.
WINNING!!
Where does China get petroleum from. I know they don’t have their own only coal.
Fantastic idea. I wonder what kind of incentive they would find enticing?
Is this not the EXACT reason that the President spent so much time with South Korea, Vietnam and India? Get the companies to move out of China, to these other countries that are more open and free. Get some beneficial trade deals with all of them and at the same time starve the beast, that is China.
I’ll go out on a limb and say that is what he’s trying to do with North Korea. Schmoozing them to cut ties with China and the US can bring them into the 21st century.
Check out THIS.
I bought a pair of the 9" lineman's pliers. I find them every bit the equal of my late grandpa's "Klein" pliers from back when all our tools were made in USA.
I predict China will start nationalizing foreign co’s especially hi-tech firms so they can’t leave.
Won't happen. The Cost of Democrats remains far too high.
“Where does China get petroleum from?”
Mainly the Middle East. China is heavily dependent on imports of oil, gas, raw materials and even food.
Excluding the United States, they run a net trade deficit with the rest of the world, because of those imports.
They are tightening their belts, and cutting imports as their exports slow, to maintain a large positive trade balance.
They need to keep hard currency cash flow, because their economy is indebted to the hilt. More than half of their industrial companies (their so-called “Zombie factories” - dead but still moving) are at high risk of being able to pay even the interest on their loans, according to McKinsey & Co (chrome-extension://oemmndcbldboiebfnladdacbdfmadadm/https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Signs%20of%20stress%20Is%20Asia%20heading%20toward%20a%20debt%20crisis/Signs-of-stress-Is-Asia-heading-toward-a-debt-crisis.ashx - you must cut and paste the whole web address to see this .pdf, just clicking the link part won’t work).
We need to stampede our supply chain out of that mess, before the bubble bursts. I am guessing that after the election, we will kick the last struts outs, and watch that Potemkin Village of an economy go down in flames.
More jobs for Americans. Doesn’t sound like a bad plan( Maybe Barry Soweto believes so!)
But aren’t these still ChiCom-owned companies?
“I predict China will start nationalizing foreign co’s especially hi-tech firms so they can’t leave.”
I think you are right. They dress it up, and re-phrase what they call it, but they have already been doing some of that in effect, over the last few years.
When South Korea deployed the THAAD Air Defense system, China retaliated against Korean businesses in China. The Koreans have been pulling out ever since, and the communists have found many ways to take money and assets from them, and have tried to keep the businesses running under Chinese private or Government management.
Foxconn and their Japanese partner recently announced that they were planning to sell their massive new video screen factory in ShenZhen. It was the most expensive single facility ever built there, and was just months from its projected start date. The Government is talking about making the production start somehow, nevertheless. It may become the flagship of a new round of more outright nationalizations.
When push comes to shove, the “Mr. Nice Guy” friendly Panda mask is going to come off, and the true face of the communists who run the world’s largest concentration camps, and harvest the organs of political prisoners for personal profit, is likely going to be seen.
Pfft...call me when Harbor Freight pulls out of China.
Now if we can concentrate on moving some of Home Depots customer base back to their own countries that’ll be just great.
“But aren’t these still ChiCom-owned companies?”
Some of them are, but most of them are not.
China now has strict capital controls to keep money from flowing abroad, and they dictate business decisions to their domestic companies, to meet their political goals (like maintaining domestic employment and supply chain).
A lot more Chinese companies would like to get out, than can. They need powerful political connections (a Party Princeling with a fat equity stake) for Government approval, or to be safe from Government reprisal.
the problem with this is that htey are moving to vietnam, thailand, taiwan, korea, etc. Not to the US. SO, sure, china is hurt by the loss, but the US is not helped outside of the strategic argument of US vs China. In other words, it doesn’t help our economy, it doesn’t help our middle class. Its just more of the same globalist bullshit we’ve dealt with for 30-40 years.
They need to do worldwide tariffs on all trading partners such that if the product being imported was produced by someone whose labor rates are lower than ours, the tariff needs to make up the difference.
Yes there is a lot of never Trumpers out there talking about how tariffs are taxes on Americans, yada yada.
Maybe some are right that it comes at an economic cost - in the short term - but there is a long term problem to fix. Not to mention I see China as America’s number one geopolitical foe.
At the toy store and my son wanted some german cars. I said why pay $8.00 for something “German” when it is made in China? Just buy $1.00 hot wheels.
Horrible Freight? Indeed
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