Say you’re an auto manufacturer. You ca build in the US, pay massive tarrifs (50% on steel, 100% on computer chips, etc) on all your parts and supplies, then have to sell to Americans who expect to pay less because they don’t have to pay a tarrif on domestic products.
Or you can build in Europe, have 0 tarrif-related expenses, and just pass the new 15% tarrif to your American customers.
It’s literally better for existing American manufacturers to move out of the country than to continue operating here.
“Favorable Deals” actually make it worse.
Say you’re an auto manufacturer. You ca build in the US, pay massive tarrifs (50% on steel, 100% on computer chips, etc) on all your parts and supplies, then have to sell to Americans who expect to pay less because they don’t have to pay a tarrif on domestic products.
Or you can build in Europe, have 0 tarrif-related expenses, and just pass the new 15% tarrif to your American customers.
It’s literally better for existing American manufacturers to move out of the country than to continue operating here.