High tariff walls will incentivise companies to move from a “China plus one” manufacturing model to a US plus one. — Bloomberg
PRESIDENT Donald Trump’s tariffs look to bring investment and production back to the United States. Some manufacturers will do so, as they vie to sell to America’s voracious consumers.
But high tariff walls will delink US suppliers from the rest of the world, incentivising companies to move from a “China plus one” manufacturing model to a US plus one. The end result will be the marginalising of US exports in the global economy.
