RVonse
Veteran Member
- Joined
- Jul 1, 2005
- Messages
- 3,782
- Location
- USA
- Basic Beliefs
- that people in the US are living in the matrx
Some industries that have not completely outsourced will have an automatic competitive advantage. That competitive advantage will be noticed immediately. For example an auto plant in the US making the same model as a plant in Mexico will immediately increase production to the US. They will work the US at absolute maximum and hire overtime help to keep the line running even during lunch hour. Their Mexico plant will be idled. Those producers won't have any need for studies or wondering what Trump does next because they already have multiple plants making the same model. And those producers who do still have US plants will very quickly dominate the market with their products and huge profit margins at the expense of others who are just waiting at the sidelines to move back the US.And the amount of investment is not likely to be significant since there is huge uncertainty on what the tariff amounts are going to be in even a month or two, let alone in 3-5 years. Why invest in something that requires a tariff to remain profitable when that tariff may be gone or reduced during the operational life of that investment?In the end, tariffs may boost investment and production in the US for some industries
They won't be waiting long and we will hear a huge "sucking sound" back to the US.