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Comment by saturn8601

15 days ago

>The calculus is pretty complicated. Economies of scale become a factor - is one large global factory more efficient than separate regional facilities? Also income disparities; Americans can more afford to pay a 25% premium on a good than most of the rest of the world can; so maybe you just make Americans pay more. Or, maybe you do both, have a world-wide facility and a American facility, but still charge Americans the tariff premium, and pocket the 25% as profit instead (steel producers model; also pickup trucks); this works well in conjunction with the USA's low business taxes.

25% margins are huge. Sounds like that margin is someone else's opportunity....which is exactly what the Administration hopes will happen.

There is an opportunity here: Cozy up to Trump, have him give you a ton of government money and spin up a company that will take those margins.