With tarrifs on Chinese imports on the horizon, will Lionel bring more manufacturing back to the USA?
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Only if the cost of doing business in the US becomes attractive enough to provide substantial savings compared to the tariffs.
Unlikely Others can correct me if I am wrong but my understanding is that it is nearly impossible to get Lionel ‘s tooling out of China and if Lionel could it would probably send them to Vietnam
No, it would take years/decades to get that kind of manufacturing capability built back up, it would make it even more expensive, and none of the people who know how that process works are American citizens. We made a deliberate choice over the last fifty years not to be a country who invested money and people into manufacturing jobs choosing instead to leverage the power of the Dollar to import what we needed instead, so getting into voluntary trade wars feels incredibly small-brained dumb.
But what do I know? I'll just keep playing with trains. 🚂🚂🚂
To be clear 60% or more of imports from China are already subject to tariffs imposed the first time around (2018) which have remained in place ever since. The proposed 10% tariff would actually be a total of 30%.
To my way of thinking if the 20% tariff did not bring manufacturing of model trains back to the US, why would an additional 10% increase in those tariffs do that? Moreover that does not appear to be the stated goal unless I missed something.
John
@BMT-Express posted:With tarrifs on Chinese imports on the horizon, will Lionel bring more manufacturing back to the USA?
Not in my lifetime
There are some small efforts in the UK to bring model train manufacturing back home, but from what I've read it's way too early to make any judgments.
Even if existing tooling could be brought back to the US (doubtful), the cost for labor would probably be prohibitive unless we're willing to pay at least double what we're paying now for trains. And if new tooling needs to be created, forget about it.
Waiting for the inevitable political comments and the deletion of this thread...
@Mallard4468 posted:There are some small efforts in the UK to bring model train manufacturing back home, but from what I've read it's way too early to make any judgments.