[Aces4]

Originally Posted by Packer Fan

I am retiring soon from a US based fortune 500 company (and I run the supply chain). We are a worldwide company but heavily US and made in USA on a lot of our product, but I have been to china 12 or 13 times - I have lost count. I can tell you that a 10% tarrif will change a lot of behavior, 20 is huge. 50% closes most of china. If the incentives are correct, companies would prefer to manufacture close to home. Transportation is not cheap. I lost 2 jobs to the chinese in 1999 and 2002. I know this game well and you are just dead wrong. The labor is an issue, but its a small one. There are huge incentives given by Chinese companies to sell cheap, and then they get the VAT tax handed to them (that is Trumps 10%) when they export. They can sell at cost, and make 10% just by exporting. Please insert just about any country name here, because they all have VAT taxes.
I have been about 20% away from reshoring several items, and now we are doing it. I can't wait to retire, but I do wish I could participate in this reshoring, it will be great. I don't always agree with Trump, but this is why I voted for him. I have played a rigged game for 40 years, moved my family across the country several times, been laid off because the game was rigged against American Manufacturing. For the first time, there is hope.

Excellent post! I encourage you to repost this under the thread in this forum: "Global mfg will never relocate". Feet on the ground know more than those observing from afar.