Presidents Xi and Trump preside over the two largest economies the world has ever seen. In a logical world, the two mega-economies of the United States and China would enrich each other by encouraging trade. The opposite is happening. Trump announced a 25% tariff on imported steel and China responded with a list of 128 US products that would face import taxes. For the first time since the 1930s, the world is on the brink of a trade war.
Historical Precedents
The last time the United States acted in this fashion, they introduced the Smoot-Hawley tariffs – named after the senators who introduced the tariff bill to Congress. These tariffs and the retaliatory tariffs introduced by trading partners of the US contributed to the worldwide economic decline that is known today as the Great Depression. Trump would do well to read his history books before declaring “…trade wars are good and easy to win.” The almost universal consensus amongst economists is that trade wars are bad and everyone loses.
UK Production
The main argument for manufacturing in China is that the savings on labour outweigh the increased costs of shipping. The introduction of tariffs considerably increases the costs of shipping. Returning manufacture to the UK, especially for those selling primarily to the UK and US markets, would suddenly seem to be the sensible solution.
Plastics Manufacture
Chat to our sales team about prices for manufacturing plastic products and packaging here in our UK facility. You may be surprised to realise that many lines can be produced for the same price, if not cheaper, than our rivals in China. Plus, our lead times are significantly shorter as products manufactured in Norfolk won’t take 5-6 weeks to be transported by sea and come through customs. Shipping to the USA is also cheaper from the UK than from China.
Saving money on shipping will even help your product be more environmentally-friendly. For more information on any of our processes or services, contact our team at sales@coda-plastics.co.uk or call +44 1692 501020.
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