Shortly after China announced that it planned to respond to increasing U.S. tariffs on Chinese goods by imposing retaliatory tariffs of 5 to 10 percent on $75 billion worth of U.S. goods, President Trump “ordered” U.S. companies to pull out of China.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA,” Trump tweeted. He did not elaborate on what steps his administration will take to deter companies from operating in China, and it is not clear what legal authority he has to do so. In theory, however, he can impose import and export restrictions.
Tariffs on Chinese imports, which are paid by U.S. businesses and ultimately by American consumers, are already causing some companies to shift manufacturing away from China and into other locations. If you want to find out whether India is a good alternate, please contact Amritt
