I'm getting increasingly frustrated by the tariff situation. There's no guarantee that the tariffs will still be in place in 2020 so we have no incentive to shift production. Further, for stuffed animals, because of the way the tariffs are structured, we are incentivized to ...
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Import skins into Mexico and fill the skins with plush material there so as to get "Made in Mexico". If we do the same in the United States, which is the point of the tariffs, we still pay tariffs on the stuffed animal skins. So basically, the whole program is poorly thought out.
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Tariffs are simply encouraging importers to shift production from China to other non-US countries, instead of the US. That's an improvement on balance, but it certainly won't "Make America Great Again".
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Replying to @Molson_Hart
My theory is that the trade war - and the strong bi-partisan support against China - is that this is really about military spending. I didn't realize just how fast China is catching up to the USA until very recently. If I'm right, this will only escalate.
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Cold war 2.0. Also, they've, with cooperation from American companies, have hollowed out completely our manufacturing base and a large part of our middle class.
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