WEBVTT

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- President Donald Trump has
long advocated for tariffs

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as a way to push companies
to bring back production

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to the US and create jobs.

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It's not so simple.

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Jobs and factories will come
roaring back into our country

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and you see it happening already.

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Trump said on Wednesday,

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we will supercharge our
domestic industrial base.

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We will pry open foreign markets

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and break breakdown trade barriers.

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Manufacturing employment
in the US has been falling

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for decades, and major
corporations have developed deep

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global supply chains.

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The US doesn't have enough
operational factories capable

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of mass producing necessary
parts such as screws,

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which is set to drive up
costs for manufacturers.

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Labor also tends to be more
expensive in the US than in

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most other countries.

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Steel tariffs implemented
between 2002 and 2003. By then.

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President George W. Bush
cost 168,000 jobs per year in

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steel using industries.

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According to CNBC

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and a 2024 research paper found

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that tariffs Trump implemented

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during his first term
didn't bring back jobs in

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protected sectors.

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Many manufacturers in
the United States already

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operate within margins.

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National Association
of Manufacturers, CEO,

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Jay Timmons said in a
statement, the high cost

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of new tariffs threaten
investment jobs and supply chains,

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and in turn, America's ability
to out-compete other nations.

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The Trump administration has
set tariff rates at about

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half of what it says.

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Other countries levy on American imports

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and imposed a 10% base
tariff on almost all nations.

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After all, the tariffs
take effect next week.

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Importers who are responsible

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for the levies will pay
much more for most goods.

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Scott Paul, president of the Alliance

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for American Manufacturing,
which supports the tariffs,

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told courts that he believes
the duties will help

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push reshoring.

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Where companies bring back
production based abroad back

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to their home country
or nearshoring, where

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that production is returned
to a nearby country.

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Mexico and Canada facing their
own 25% tariffs will not be

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affected by the new tariff actions.

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While most Latin American
countries will face lower rates,

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according to Goldman Sachs,

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the tariffs especially hurt
Southeast Asian countries,

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including Vietnam

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and Thailand, whose leaders are trying

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to negotiate with the White House.

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China is one of the country's hardest hit

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by the tariffs now
facing a 54% duty on all

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shipments to the us.

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Several products face even higher tariffs.

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As the past few American
administrations have moved

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to develop trade barriers against goods

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like electric vehicles.

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If you look at the weight of
the tariffs, you're likely

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to see some suppliers
say they can move from

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Asia to the Americas.

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Paul said, while the US
wouldn't be able to absorb all

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of the apparel production in Asia,

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Paul said there could be an opportunity

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for North American supply chains.

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There have been some new
investment announcements in recent

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months from major firms like OpenAI,

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which launched a $500 billion.

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Stargate Venture machinery
maker JCB said Thursday it will

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double the size of a planned factory.

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But those plans are as yet
the exception, not the rule.

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From a supply chain perspective,
we're not seeing a flood

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of factories breaking ground.

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David Warwick, a Microsoft veteran

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and executive at Overhaul,

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a supply chain risk management
firm told courts by email,

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we're seeing spreadsheets,
modeling risk assessments.

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Even companies that have
been willing to work

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with the Trump administration
are set to be affected.

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Hyundai Motor Company,

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which is investing in a
$5.8 billion steel plant

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to supp supply its car
factories in Georgia

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and Alabama, will be slammed
by new tariffs on vehicles

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and parts, as will Honda Motor Company,

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which has shifted planned vehicle output

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to Indiana from Mexico.

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Apple plans to invest $500
billion in the US across Trump's

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term in office, something
the president often applauds

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during Trump's 2018.

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2019 tariffs, apple
wanted a tariff exemption

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for parts used in Mac Pro computers.

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The tariffs on China could push the cost

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of the cheapest iPhone 16 model

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to $1,142 from $799,

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the $1,599 iPhone 16 Pro
Max could become almost

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$2,300 if Apple shifts the brunt
of the duties to customers,

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according to one estimate.

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But Apple is nonetheless unlikely

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to bring much production back
to the US as moving output

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to Texas or New Jersey from
abroad would raise the price

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of an iPhone to $3,500 from $1,000.

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According to Wedbush Securities analyst,

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Dan Ives making Apple products

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and iPhones in the US sounds great

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behind the microphones in
the two oh two area code,

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but in reality, they are a fantasy.

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Ives said in a note on Thursday,

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the tariffs in their current
form are a shutoff valve

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for US consumer sales

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or risk prices going up to
levels that are hard to digest.

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This article is written by William

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Gavin, read by Andy Mills.

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Thanks for watching and stick with qz.com.