Zero percent tariffs across the board all countries

[Say it aint so]

In light of this:

Vietnam: In a letter Saturday, Vietnam’s Communist Party offered to remove all tariffs on U.S. goods in hopes of lowering the 46% tax Trump imposed. From this thread.

Trump et all if they had their desire, would like to remove all tariffs from all trading partners and in this case with Vietnam, Vietnam is asking for zero tariffs as well.
The hourly manufacturer rate of pay in Vietnam is $6.95. The hourly manufacturer rate of pay in the US is $ 28.92. That's a 76% difference. So not only a huge labor cost savings, with the Trump TCJA (Tax Cuts Jobs Act) the US shifted toward a territorial tax system. That allows multinational corporations to avoid US taxes on most foreign earnings. So you, as a manufacturer if you moved overseas you will 1) face no tariffs 2) Save 76% in labor costs and 3) don't have to pay US taxes on your revenue. 4) Regulatory laws are mitigated.

So if you were a American manufacturer, why would you not move your operations to Vietnam?
.

 

[Fantine]

In light of this:

Vietnam: In a letter Saturday, Vietnam’s Communist Party offered to remove all tariffs on U.S. goods in hopes of lowering the 46% tax Trump imposed. From this thread.

Trump et all if they had their desire, would like to remove all tariffs from all trading partners and in this case with Vietnam, Vietnam is asking for zero tariffs as well.
The hourly manufacturer rate of pay in Vietnam is $6.95. The hourly manufacturer rate of pay in the US is $ 28.92. That's a 76% difference. So not only a huge labor cost savings, with the Trump TCJA (Tax Cuts Jobs Act) the US shifted the toward a territorial tax system. That allows multinational corporations to avoid US taxes on most foreign earnings. So you, as a manufacturer if you moved overseas you will 1) face no tariffs 2) Save 76% in labor costs and 3) don't have to pay US taxes on your revenue. 4) Regulatory laws are mitigated.

So if you were a American manufacturer, why would you not move your operations to Vietnam?
.

When machines are manned mostly by robots, the labor cost will be comparable. There would be an advantage in utility rates, construction costs, maintenance. That would be countered by high shipping costs.

The regulatory costs trouble me. One of my son's friends is a chemical engineer who told me years ago that China graduated many more chemical engineers than U.S. colleges, with a caveat. Because the factories were so heavily polluted, the engineers often died of cancer in their 30's. We should not want to aspire to having so few regulations that worker health and lives are affected (although as few regulations as possible seems to be a Republican goal) nor should we want other countries to deregulate dangerously to meet our price guidelines.

 

[Laodicean60]

When machines are manned mostly by robots, the labor cost will be comparable. There would be an advantage in utility rates, construction costs, maintenance. That would be countered by high shipping costs.

The regulatory costs trouble me. One of my son's friends is a chemical engineer who told me years ago that China graduated many more chemical engineers than U.S. colleges, with a caveat. Because the factories were so heavily polluted, the engineers often died of cancer in their 30's.

Well said.

We should not want to aspire to having so few regulations that worker health and lives are affected (although as few regulations as possible seems to be a Republican goal) nor should we want other countries to deregulate dangerously to meet our price guidelines.

I disagree because it's too extreme. My millennials won't let us go back to those extremes and Americans know too much about environmental toxins.

 

[mark46]

When machines are manned mostly by robots, the labor cost will be comparable. There would be an advantage in utility rates, construction costs, maintenance. That would be countered by high shipping costs.

So, instead or getting low-cost goods from Vietnam, Trump will have robot jobs in the US.

 

[Say it aint so]

When machines are manned mostly by robots, the labor cost will be comparable. There would be an advantage in utility rates, construction costs, maintenance. That would be countered by high shipping costs.

The regulatory costs trouble me. One of my son's friends is a chemical engineer who told me years ago that China graduated many more chemical engineers than U.S. colleges, with a caveat. Because the factories were so heavily polluted, the engineers often died of cancer in their 30's. We should not want to aspire to having so few regulations that worker health and lives are affected (although as few regulations as possible seems to be a Republican goal) nor should we want other countries to deregulate dangerously to meet our price guidelines.

Yes. Robots are the wave of the future. I have known to be wrong, but if American manufacturers could just come back home and fill their manufacturing with robots and not have to worry about labor costs, they would. But I'm not seeing that. Nor is shipping costs a great hindrance given the scale of offshored shipping. So again given the current environment if rates went to zero, why wouldn't I move?

 

[Richard T]

When machines are manned mostly by robots, the labor cost will be comparable. There would be an advantage in utility rates, construction costs, maintenance. That would be countered by high shipping costs.

The regulatory costs trouble me. One of my son's friends is a chemical engineer who told me years ago that China graduated many more chemical engineers than U.S. colleges, with a caveat. Because the factories were so heavily polluted, the engineers often died of cancer in their 30's. We should not want to aspire to having so few regulations that worker health and lives are affected (although as few regulations as possible seems to be a Republican goal) nor should we want other countries to deregulate dangerously to meet our price guidelines.

You assume that labor can equally be replaced. Machines cost money, if 3 low paying workers can create the same output yet cost less than running an expensive robot then the humans should still be hired. (Based on the cost and expected working span of the robot, plus the interest on the cost of capital, plus the maintenance and repair.)

 

[Richard T]

In light of this:

Vietnam: In a letter Saturday, Vietnam’s Communist Party offered to remove all tariffs on U.S. goods in hopes of lowering the 46% tax Trump imposed. From this thread.

Trump et all if they had their desire, would like to remove all tariffs from all trading partners and in this case with Vietnam, Vietnam is asking for zero tariffs as well.
The hourly manufacturer rate of pay in Vietnam is $6.95. The hourly manufacturer rate of pay in the US is $ 28.92. That's a 76% difference. So not only a huge labor cost savings, with the Trump TCJA (Tax Cuts Jobs Act) the US shifted the toward a territorial tax system. That allows multinational corporations to avoid US taxes on most foreign earnings. So you, as a manufacturer if you moved overseas you will 1) face no tariffs 2) Save 76% in labor costs and 3) don't have to pay US taxes on your revenue. 4) Regulatory laws are mitigated.

So if you were a American manufacturer, why would you not move your operations to Vietnam?
.

I think a lot of Vietnam workers get just minimum wage or around 200 a month. • What is the Average Salary in Vietnam? • iScale Solutions.