Remember The Pandemic Supply Chain Problem? -- Digby

[DallasNE]

35. At This Point It Is Guess Work

I haven't seen data on what the tariff rate currently in effect is by country nor the dollar volume by country. Also, what are the many tariff exceptions? Trump just isn't making the data available where reliable estimates can be had. Even with China and its 134% tariff, there are exceptions.

But there is no question, the China tariffs by themselves will cause severe supply chain issues. Some effects will be felt even though there has been a 90-day delay in the tariffs. For instance, Subaru, a Japanese company, makes cars that it ships to Canada that are made in Indiana. They have announced that they will be shipping cars made in Japan to Canada to bypass the tariff. They will continue to make cars in Indiana for sale in America, but cut out production of cars to be shipped from America to other countries, where they face tariffs. Will other car makers follow this model? I would expect so, meaning the tariffs are backfiring. So much for hairbrained ideas.