Last night I was thinking of the whole tariff wars going on with China and the USA. Let me bring you UP TO DATE just incase....
The tables are now turning, Chinese factories are experiencing significant disruptions and, in some cases, shutdowns due to the recent escalation of U.S. tariffs. The latest round of tariffs, which have reached as high as 125% to 145% on many Chinese goods, has led to a wave of order cancellations from American importers who are unwilling to pay the increased costs.
Reports from Chinese social media and industry insiders confirm that factories are laying off workers, downsizing, or even selling off equipment as they face an "unprecedented winter" for manufacturing. The ripple effect is also hitting factories that do not export directly to the U.S., as their upstream suppliers lose orders and flood the domestic market, intensifying competition and financial strain.
On top of that, the Chinese factories are now leaking the dirty secrets of some of the world's largest brands claiming that they are made in China, shipped to Italy and other European countries for a final logo slap on and a few stitches and then sold to the public at outrageous mark ups.
Alright, so now that you are up to date. ( Though I know most of you already were), here is what I believe is happening.
Once these jobs "go back to the USA", it won't be humans doing the work. It will mainly robots, more than likely made by Tesla.
China knows this too and is not negotiating as the CCP realizes this is an opportunity to go all in on AI and robotics while blaming the USA for causing the loss of jobs/ lives.
In my mind, "bringing back manufacturing" to the USA means increasing the output/ GDP of America. It is not about creating jobs. Looking further into the abyss, the country that has the AI robots doing most/all the manufacturing first will maintain / or take the lead.
The winner will be the country that offers basic income first for its displaced workforce. If all the manufacturing remains outsourced, there will be little production taking place in an AI world, hence nothing to keep the machines going and no means to support its people.
This is an AI race and the eagle and the Dragon are at war.
What do you think? Share your thoughts below.
