One of the reasons the President has claimed he put tariffs on foreign goods was to move manufacturing back to America.**
Americans have always said they are willing to pay more for American-made products. So he tested how true that was. He sells filter shower heads. Right now, he sources them from China. He tested the cost of them made in China with the costs of making them in America, with the same margins. (I am not sure what tariff rate he used in testing. This was done when there was still a 145% tariff. I don't know if he used that or the old 64% tariff before Trump. The results would be even more skewed if he used the new (now removed) tariff rates.
Anywho, you can guess what he found.
For the Made in China version, he sold 548 units.
For the Made in America version, he sold 0 units (zero).
There is a significant cost increase, but that happens when you move manufacturing to the US. It seems this is not a slam dunk.
* He has also said the reason for tariffs is to bring in billions of dollars, but that falls apart if we reduce tariffs as much as we have. Even with tariffs, that free money comes from consumers.
No comments:
Post a Comment