It depends on how far Trump is willing to go. If he imposes 10000% tariffs or something and no one can afford to buy their products at all, their choice will be to shut down, abandon the American market (their largest market and where they are based out of), or onshore.
No. You’re not thinking clearly. It’s not just a choice. It’s not just spending money. The machines to run the factories will need to be imported because we don’t make them here. That means the cost of building a factory gets higher and higher as the tarrifs go higher and higher. That’s a contradiction they can’t easily escape from. But further, they couldn’t get a factory with imported machines built in under 2 years, so it’s easier for them to business putsch than it is reshore.
If they decide to build everything from scratch in the US, it would take a decade, and the raw materials would have to be imported.
No amount of Trump’s arbitrary and capricious action can make this happen.
AFAIK 100% is already effectively cutting off all trade, anything past this won’t make a difference; it’s why China stopped raising theirs. Shipments have already entirely ceased.
These are hardly “American” companies, but global corps at this point. I’d expect them to move their operations to Ireland or Panama or something and abandon the unstable US market that way.
The issue at that point is that onshoring would be a decade-plus long project. Why commit to that when Trump changes his mind every twenty minutes?
It depends on how far Trump is willing to go. If he imposes 10000% tariffs or something and no one can afford to buy their products at all, their choice will be to shut down, abandon the American market (their largest market and where they are based out of), or onshore.
No. You’re not thinking clearly. It’s not just a choice. It’s not just spending money. The machines to run the factories will need to be imported because we don’t make them here. That means the cost of building a factory gets higher and higher as the tarrifs go higher and higher. That’s a contradiction they can’t easily escape from. But further, they couldn’t get a factory with imported machines built in under 2 years, so it’s easier for them to business putsch than it is reshore.
If they decide to build everything from scratch in the US, it would take a decade, and the raw materials would have to be imported.
No amount of Trump’s arbitrary and capricious action can make this happen.
AFAIK 100% is already effectively cutting off all trade, anything past this won’t make a difference; it’s why China stopped raising theirs. Shipments have already entirely ceased.
These are hardly “American” companies, but global corps at this point. I’d expect them to move their operations to Ireland or Panama or something and abandon the unstable US market that way.
There is another secret option
Go bankrupt and let the consumers eat shit
That’s shutting down.
I’m dumb and didn’t read your comment properly