Mostly I suppose - but in the example/hypothetical given in the article of Sony moving it’s manufacturing from China to India, it would take 6-24 months minimum to find/develop the space they need and move the equipment. This cost to move all of the equipment half way across the world and the opportunity cost of out of stocks at stores worldwide when your distribution chain finally drys up - the cost was sited at 10%. If they MOVE a facility, I think that cost gets passed on to everybody worldwide.
There may be situations where JUST American production is moved to another country with more favorable tarrifs and worldwide production continues out of the existing facility, and probably in a situation like that, only the American costs would increase to cover the facility/equipmemt costs. But for that to make fiscal sense, this would have to be somehow CHEAPER than the price already elevated by the tarrifs. Companies could even in this case, theoretically hike prices worldwide to subsidize the impact to everybody. More people paying a higher prices mean everybody pays less.
Now, I couldn’t say if there’s any precident for the last line there. Purely hypothetical. But regardless - it’s entirely possible it WON’T be JUST Americans paying higher prices.
Tilgare@lemmy.world 5 months ago
Mostly I suppose - but in the example/hypothetical given in the article of Sony moving it’s manufacturing from China to India, it would take 6-24 months minimum to find/develop the space they need and move the equipment. This cost to move all of the equipment half way across the world and the opportunity cost of out of stocks at stores worldwide when your distribution chain finally drys up - the cost was sited at 10%. If they MOVE a facility, I think that cost gets passed on to everybody worldwide.
There may be situations where JUST American production is moved to another country with more favorable tarrifs and worldwide production continues out of the existing facility, and probably in a situation like that, only the American costs would increase to cover the facility/equipmemt costs. But for that to make fiscal sense, this would have to be somehow CHEAPER than the price already elevated by the tarrifs. Companies could even in this case, theoretically hike prices worldwide to subsidize the impact to everybody. More people paying a higher prices mean everybody pays less.
Now, I couldn’t say if there’s any precident for the last line there. Purely hypothetical. But regardless - it’s entirely possible it WON’T be JUST Americans paying higher prices.