The consumer might pay some of the tariff. First the manufacturer squeezes their suppliers; in the case of Ford, for instance, its starts squeezing the US suppliers to its Canadian assembly plants. It might start cutting back of R&D and product innovation, especially if it perceives the US becomes essentially a closed market to imported brands. This means <deleted> cars, Why make good cars if consumers will buy <deleted> cars because they are cheap. There might be some consumer price creep. Ford cost cutting ripples through the economy, Maybe it decides to use less steel, achieved by using thinner panels. Yes, the cars might rot out quicker, crumple easily in a crash, but Ford makes money from the first owner only, not the second or third owner. Politicians need to be honest what reshoring actually means. It means a resilience first supply chain not an efficiency lead supply chain. It means government needs taking precedence over the needs of shareholders. It means a fall in dividends, because the corporate missing is no longer to improve margins or Ebitda. If profit is no longer a top priority, then inward investment declines. The world market COG is shifting.
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