Donald Trump’s efforts to bring China to bear against it’s YUGE trade with America has had unforeseen benefits in other places as American manufactures begin to react to Trump’s increased taxes on product from China ….
Several other countries provide the cheap labor that China does and are anxious to fill the void…
But American companies don’t really have to go far at all….
South of the border is where American manufactures are increasingly moving to….
Trump bashing Mexico ….
But hundreds of thousands of American’s fly over the border each year to vacation…
And more and more companies hire Mexico ‘s cheap labor to make stuff for America….
China is no longer the low-cost producer globally, even if its infrastructure and expertise in multiple areas of manufacturing are second to none. Just as years of volatile oil prices and vulnerability to the erratic politics of oil led many companies to invest in domestic substitutes like natural gas, the uncertainty surrounding American tariffs is forcing manufacturers to rethink their supply chains. Companies are reconsidering China as a primary place to manufacture.
But that has not led those companies to bring factories and manufacturing jobs to the United States. Instead, they’re looking elsewhere for low-cost, efficient hubs, to places like Vietnam, Malaysia, the Philippines and, of all places given Trump’s rhetoric, Mexico.
If Trump’s trade war against China does disrupt the U.S.-China economic fusion, the main beneficiary will not be American manufacturers. The winners will be other countries, including one very prominent country that borders the U.S. and that Trump has denounced for what he has said are its unfair trade deals with the United States under NAFTA. Already, Hasbro and GoPro have shifted production from China to Mexico, along with hundreds of other companies totaling tens of billions of dollars. Other countries that are seeing new investment include Indonesia and Egypt.