TRUMP’S TARIFFS CAUSE COMPANIES
TO ABANDON CHINA, by
President Trump’s tariffs are beginning
to cause China a world of hurt as companies begin to move manufacturing out of
the country. Very few companies are willing to appease China at the risk of
alienating the largest consumer nation in the world.
It’s easier for them to move to a
country where the probability of stiff tariffs are likely. Many of them are
moving to Viet Nam. Brooks Running told the press in May that they would have
to move from China and Apple is looking for a new place to manufacture their
products as the tariffs would add too much to the cost of their phones and
other products.
From The Conservative Tribune: Obviously, critics
of President Donald Trump will be crowing that the trade confrontation is
benefiting foreign countries manufacturing economies while raising prices on
American consumers.
But those detractors are missing a point that the hard men in Beijing are
no doubt appreciating.
China is a powerful country that’s growing dangerously
more powerful all the time (and it’s not
shy about flexing its military
muscles), but it still relies on the
United States.
The current round of tariffs, $250 billion, is already costing the
Chinese manufacturing, as the Fox Business News report showed. A new round on
$300 billion worth of goods from China entering the U.S. is likely to bite even
deeper.
Besides Apple, other big-name companies such as GoPro, the camera maker;
Hasbro, the toy and game maker; and the venerable tool company Stanley Black &
Decker are also reducing their production in China because of the trade
dispute.
Comments
Companies who move
their manufacturing to the US should adopt more automation and the latest
technology to build in to their plants to increase throughput, lower costs and
improve quality and reliability.
Norb Leahy, Dunwoody
GA Tea Party Leader
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