{UAH} With the Trump win, will manufactured products such as Iphones be made in the USA instead of China?
Nope. They'll continue to be made in China, imported into the US, and Americans will pay the extra cost of the tariffs .
"No!". "Trump said China would pay!"
Sorry, that's not how it works.
See, let's say there's a thing made in China. The thing costs the Chinese company US$200 to make. They tack on another US$50 for overhead & profit. An American company imports the thing, then turns around and sells the thing for US$325; the $75 difference being their markup to cover their costs and make money.
Now, Trump slaps an 80% tariff - he's said he would put a 20% tariff across the board, plus an extra 60% on Chinese goods.
So now, the thing still costs the Chinese company US$200 to make. The Chinese company still tacks on $50 for their overhead and profit. The American import company imports the US$250 thing. Now, in addition to their other costs, they have to pay US$200 in tariffs (80% of 250 is 200, just in case you were wondering where that came from). So, net cost to the importer is now US$450, not US$250.
So instead of selling for $325 - which would actually be a $125 loss now - they have to sell it for US$525 just to meet their costs and keep their profit margin the same.
Net result: The American customer just paid a LOT more. Not China, not the importer. The end customer.
This also doesn't address what China might do in economic retaliation, but you can take it to the bank they would. They did so when Trump was in office last time and started throwing tariffs around, and as a result, Trump had to come up with a 28 BILLION dollar bailout for American farmers since China wasn't buying their crops anymore.
When Trump says "China will pay" he has no idea what he's talking about. My shocked face, let me show you it.
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