If they only had applied tariffs increase on China's production, Trump might had managed to induce huge crisis in China.If we're being honest, we would need to tariff most Chinese goods 500-1000% before most manufacturers would even consider reshoring to the US, as well as a few dozen other countries.
The talk now isn't about reshoring to America, but to reshoring to Vietnam, Thailand, India, Peru, Chile, Mexico, etc.
However in a lot of market segments U.S is importing more than 90% from goods they are selling in U.S for retail sales customers...
For example from China, Vietnam, Indonesia, Bangladesh, India etc...and doesn't produce enough cheap products in U.S.
In asia etc workforce is considerably cheaper, energy supplies cheaper cos lesser tax, especially important are expenses difference for industrial waste handling, transport, reprocessing and remainings disposal.....
● Ofc with proper marketing and high quality it is possible establish for example mobile phones brand and produce in U.S.
If quality will be better, a lot of customers might agree to pay for more expensive mobile phone.
Cos why is possible to sell expensive luxurous cars models????
●
However this mainstream mass market production customers aren't purchasing for long term usage?
For example if produced in U.S socks from cheap end ...will cost 3-7x more than stuff imported?
I don't think that customers will be happy.
The Dow isn't the market. VTI is down 16% ytd, which is pretty close.