"Trade wars are good and easy to win"

US v China: who wins? Vietnam!

Companies with thousands of factories in China are now racing to relocate out of the mainland, which seemed the only practical solution to avoid losses from higher tariffs that could take effect in a little more than a month. Earlier this week, Trump said it was “highly unlikely” that he would hold off on increasing the tariffs.

[...]

Importers and distributors, especially in the furniture industry, are confronting the hard truth that the U.S. president’s tariff strategy of bringing production back to the U.S. may not be compatible with a reality that has forced manufacturers to shift production overseas to ensure the low prices that shoppers demand.

[...]

Even though U.S. companies pay the duties when they bring in imports, the additional costs are usually passed right along to customers. As a result, many regard tariffs as taxes on consumers.

[...]

Some 9,000 miles away from the deepwater ports of China and new factory towns in Vietnam, American retailers are grappling with how much of the tariffs they can absorb.

Gao Jian, of the Vnocean Business Consulting Service in Vietnam, said he has guided about 40 Chinese enterprises per month to the more than 50 industrial parks he helps recruit for so far.

“Some companies can absorb a 10 percent tariff, but a 25 percent [tariff] would eat up their entire profit,” Gao said. “They would have to relocate and shut down their factories in China.”

[...]

The reality for many companies, though, is that the trade conflict could drag out for years or escalate quickly on Trump’s whims.

Already, about $200 billion worth of Chinese goods, which includes a range of furniture items and other consumer goods, are scheduled to see tariffs increase from 10 percent to 25 percent as of Jan. 1.

Combined with the initial $50 billion in Chinese imports that were sanctioned in July and August, 25 percent tariffs will apply to about half of all imports from China.

[...]

Foes of the tariffs, which include most major business and industry sectors, have argued that the additional costs are making it more expensive to sell to consumers and manufacture in the U.S.

[...]

After analyzing public comments, the U.S. Trade Representative decided in September to exclude nearly 300 products — mainly consumer goods from China — from the last batch of tariffs. Items exempted include smartwatches, bike helmets and highchairs.

Despite the reprieve, Strategic Sports’ owner, Norman Cheng, is ready to diversify by investing in a new factory with about 500 workers in Vietnam early next year.

“A lot of buyers are increasingly offering orders for factories in countries like Cambodia and Vietnam, due to the trade war,” said Cheng, who has 3,000 workers in China making 40 product lines.

  Politico

...but hey, do what you want...you will anyway.