SEA will basically now fall into China's lapImagine putting billions to move to Vietnam or Cambodia just to be met with this crap. AND you can't move to any other country because the uncertainty of that could be tariffs in the future.
Companies will have to pay the tariffs or move to the US, BUT remember that raw materials ARE ALSO tariffed and manufacturing costs in the US will significantly increase.
The biggest irony of all of this is that probably is going to make more US companies to move to China, I explain myself, looks like that US companies will have to make TWO products, one made in the US much expensive for US consumers and another made for the rest of the world much cheaper or a least competitive with other international companies. The incentive to not manufacturing in China to have only one supply chain is gone. If you are going to have two supply chains anyway, why not have at least one competitive.
View attachment 149253
Even better, due to extreme US pressure, they won't even be able to strongly bargain with China for a lot of benefits. Take it or leave it deal more or less with a bit of a PR to make them feel better
"These are the rules, you either follow them, or have fun with the 20+% or whatever other tariff bs US imposes every other day"
Xi can barely stop shaking from exciting. Wang Yi's phone is probably ringing non-stop for at least an hour and probably till tomorrow.
As our fav guy once said:
Complete collapse indeedThis is what annihilation looks like: China's semiconductor manufacturing industry was reduced to zero overnight. Complete collapse.