And it’s not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you’re less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn’t worth that for a whole lot of things.
And it’s not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you’re less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn’t worth that for a whole lot of things.