And it’s not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you’re less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn’t worth that for a whole lot of things.
I had a comment like this for aptera which is being built in the us but several of its most expensive components. Battery and the carbon fiber shell are built in asia and europe respectively. Seems to me they would be best off manufacturing in like ireland or something since it won’t make a big difference in how much they charge folks but would lower costs for selling around the world outside the us. Now given this is when high tarrifs are everywhere and of course day to day who knows what they will be. Still if I was a business the best long term would be stay out of the us the way I see it.
And it’s not just the assembly factories that are the problem. Why the hell would you create a factory here when your entire supply chain is going to be hit by tariffs anyway. Not only are you still having to increase prices, now you’re less competitive than offshore factories due to labor, input, and real estate costs. And why would you move supply chain factories here only for them to have to deal with both the above problems and retaliatory tariffs. The US market isn’t worth that for a whole lot of things.
I had a comment like this for aptera which is being built in the us but several of its most expensive components. Battery and the carbon fiber shell are built in asia and europe respectively. Seems to me they would be best off manufacturing in like ireland or something since it won’t make a big difference in how much they charge folks but would lower costs for selling around the world outside the us. Now given this is when high tarrifs are everywhere and of course day to day who knows what they will be. Still if I was a business the best long term would be stay out of the us the way I see it.