Nike, Adidas, Abercromie and others will move their factories to the US
China isn’t complaining that scores of companies have moved lower cost manufacturing to neighboring countries like Vietnam, Cambodia or Laos. They know those jobs aren’t coming back.
Instead, the government invested in modern infrastructure and education to equip its citizens for the jobs of tomorrow. They are even mandating AI courses in primary/secondary education. They produce 1.5m engineering graduates each year - 7X more than the US.
China is already well ahead in the development of future industries including EVs, autonomous vehicles, flying cars, factory automation, ultrafast maglev trains, supersonic commercial air travel, full scale AI adoption, and even artificial general intelligence (AGI).
These are all industries that US leaders must support in order to keep abreast with China. Placing 46% tariffs on a nation like Vietnam which levies only 15% tariffs on most US goods makes little sense and doesn’t do much to promote long-term growth.
There’s ZERO chance $Nike(NKE)$ $adidas AG(ADDDF)$ $Abercrombie & Fitch(ANF)$ and others will move their factories to the US. Not many Americans will want those jobs that pay $200 per month. At the same time, the average US consumer does not want and shouldn’t have to pay 46% more for a pair of sneakers or a tshirt.
If the key goal of Trump’s tariffs is to get lower tariffs for US goods, the right way to go about it is to enter free trade agreements that leverage the competitive advantages of stakeholder nations. If it’s only meant to contain a competitor nation that is already ahead of the game and transitioning into the future at breakneck speed, such protectionist policies will only isolate America further.
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