News MSI CEO Talks Tariffs: 'We Need to Prepare for the Worst'

ajr1775

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Jun 1, 2014
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I'm actually glad they are being forced to pull from Red China. Sucks for the now but once completed it will be best for all.
 

Ninjawithagun

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Aug 28, 2007
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I completely agree with you ajr1775. The immediate affect of the trade war with China will be painful, but over time will pay off big time. In fact, some US companies will eventually be forced to move operations back to the US. That means more jobs. Over time, the production costs will go down and the US will become the new China with regards to providing electronic products. We might actually become competitive with Japan ;-) Most folks just don't truly understand the US economy in general, nor do they understand just how much China has been screwing over the world economy (not just the US) over the past decades. They only understand near-term affects and don't know how to look at the bigger picture further into the future. The facts are simple - China does NOT want free trade because that means the end of their profitting tyranny over Europe and the US. Love him or hate him, President Trump is the very first president to actually keep his promise to fix the huge mess with our trade agreements.
 
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TJ Hooker

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I completely agree with you ajr1775. The immediate affect of the trade war with China will be painful, but over time will pay off big time. In fact, some US companies will eventually be forced to move operations back to the US. That means more jobs. Over time, the production costs will go down and the US will become the new China with regards to providing electronic products.
I'm not sure manufacturing in the US would be able to compete with China due to factors such as labor costs. Production moved overseas for a reason, and I don't think those reasons have really changed.
 
I completely agree with you ajr1775. The immediate affect of the trade war with China will be painful, but over time will pay off big time. In fact, some US companies will eventually be forced to move operations back to the US. That means more jobs. Over time, the production costs will go down and the US will become the new China with regards to providing electronic products. We might actually become competitive with Japan ;-) Most folks just don't truly understand the US economy in general, nor do they understand just how much China has been screwing over the world economy (not just the US) over the past decades. They only understand near-term affects and don't know how to look at the bigger picture further into the future. The facts are simple - China does NOT want free trade because that means the end of their profitting tyranny over Europe and the US. Love him or hate him, President Trump is the very first president to actually keep his promise to fix the huge mess with our trade agreements.
That may be the case but most likely the China jobs will move to Mexico,Taiwan, India, or Vietnam since they have cheaper labor. I don't think we will see a lot of jobs coming back to the US from this trade war as the war itself is ill planned. When the tariffs on steel happened there was a plan to increase steel manufacturing. When these latest round of tariffs occurred there is no plan to offset manufacturing in the US so companies like MSI will be looking for another cheap large labor source.
 
I completely agree with you ajr1775. The immediate affect of the trade war with China will be painful, but over time will pay off big time. In fact, some US companies will eventually be forced to move operations back to the US. That means more jobs. Over time, the production costs will go down and the US will become the new China with regards to providing electronic products. We might actually become competitive with Japan ;-) Most folks just don't truly understand the US economy in general, nor do they understand just how much China has been screwing over the world economy (not just the US) over the past decades. They only understand near-term affects and don't know how to look at the bigger picture further into the future. The facts are simple - China does NOT want free trade because that means the end of their profitting tyranny over Europe and the US. Love him or hate him, President Trump is the very first president to actually keep his promise to fix the huge mess with our trade agreements.
You are being overly optimistic - there's no way these jobs will go back to the US. Not only is the US workforce far too expensive in general, qualified workers simply don't exist in that country! We see it everyday in the car industry: even top grade luxury Tesla cars have quality problems (misaligned body panels, faulty electronics, burnt out screens) that come straight from the factory when even the cheapest Vietnamese power switches have clean soldering and proper assembly. So before these jobs come back to the US, Trump's administration will have tariff-blocked 80% of Asian countries, 60% of Europe (as in, the EU and some other countries like Switzerland) and 30% of Africa (the countries that can actually work in semi-advanced semiconductors)... Meaning that yes, in 10 years this tariff war could still be going on and the US would face global scale retaliation.

And what would happen then? The rest of the world, blocked from the US market, could really well ask for the US to reimburse their debts...

China don't really care : their internal market and their resources are both high enough that they could keep running autonomously for the next half century (China is feeding half of Asia already) and as for your thinly veiled "red commies bastards" comment, it's funny how a liberal country like the US are accusing a Communist country of trading too freely - and using a Commie tool (tariffs) to 'defend' themselves. Pot, kettle.

Results for end user? All this just means that the next iPhone will simply cost over $2000.
 
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bsdubois_57

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Jun 25, 2012
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I can remember a time, not that long ago, that a majority of PC components were designed and made in the USA. I remember Gateway, Dell, HP and many other manufacturers who built their computers in the USA. They put Americans to work. I hope the computer manufacturers realize the US has the most productive workforce on the planet. I would gladly pay more for computer components if they were made in the USA of USA components.

Wall Street may have to live with smaller profits and the alphabet soup thieves might have to learn to live on wages on par with other developed nations. That would be a shock.

Perhaps the US economy might turn again to a manufacturing based economy rather than the lesser paying service sector economy.

Time will tell.
 

aldaia

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Oct 22, 2010
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I'm amazed at some of the comments here. US unemployment rate has been steadily declining since 2010 (well before this trade war started) and is now at record lows since 1969.

Not a single job will return to the US because of this trade war, simply because there is no one to do those jobs (technically unemployment rates below 4% are considered full employment). Other countries will profit from this war, but certainly not the US.
 

svan71

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Dec 31, 2007
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I'm amazed at some of the comments here. US unemployment rate has been steadily declining since 2010 (well before this trade war started) and is now at record lows since 1969.

Not a single job will return to the US because of this trade war, simply because there is no one to do those jobs (technically unemployment rates below 4% are considered full employment). Other countries will profit from this war, but certainly not the US.
aldaia its just a guess but I belive the people currently running our economy and rewriting our decades old trade policy might be a tad bit wiser than you. Numbers do not lie. "simply because there is no one to do those jobs " Total B.S. Those jobs were lost due to unions, taxes and regulations not because people would not do them.
 

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