President-elect Donald Trump has continued his threats against American manufacturers who move their plants and the related jobs out of the country with 35% tariffs on the manufactured goods that they import back to the states. The lure of low wages in countries like Mexico and China and Viet Nam may be too overwhelming to prevent those job migrations despite those threats. And here is just what might happen (and there is a hint of this in some of the press around the Carrier plant and a rumored American iPhone plant).

We might very well see new small highly automated American plants building cell phones, TVs, washers, dryers, lawnmowers, microwaves, textiles, etc…plants that stay or come back. Plants that employ 120 people instead of 800 like 15 or 20 years ago. And their productivity will be huge! Just huge! And their output will be sold in the American market and the American market only…cause it’s gonna cost 30, 50, 80% more than products made overseas.

And American plants and American jobs will continue to move overseas but their output will be sold overseas in Europe, Japan, China, India and emerging markets worldwide. They won’t be re-imported…they won’t incur the 35% tax…and the American economy will suffer. Suffer bigly. Suffer from higher prices and a loss of jobs for exported goods when those foreign markets retaliate by not purchasing American manufactured goods or agricultural products or American services.

Tagged with:
 

3 Responses to The Future Of American Manufacturing Under a Trump Regime!

  1. Nemo says:

    All the Trump tariff talk is nothing more than, as Bill Clinton put it, “Boob bait for the Bubbas”. He’d never get a tariff through a GOP controlled congress. Instead he will make a deal with Ryan to lower the corporate tax rate by 35 points, bringing it closer to China’s current rate, declare himself the master of the deal, then go looking for a younger wife. My prediction is that she will not have a Latin-american surname.

  2. Cat Kin says:

    Well Putin has parlayed his political position into amassing 85 Billion dollars and becoming the richest man in the world. Obviously Trump admires this and will attempt to follow suit.

  3. Cat Kin says:

    Well, Putin has parlayed his Presidency into becoming the richest man in the world, now worth over 85 Billion dollars. Trump admires him and will try to follow suit, no doubt.

Leave a Reply

Your email address will not be published. Required fields are marked *