For some time there has been an argument for manufacturing in China, the main reason being that the savings in labour outweigh the increased costs of shipping.
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 be to enrich each other by encouraging trade, but in reality 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, even the EU is on the brink of a trade war.
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.
Returning manufacturing to the UK, especially for those selling primarily to the UK and US markets, would suddenly seem to be the sensible solution. Something to bear in mind for the future…
… Sabrefix is a UK based, British Manufacturer, for all of your builders metal work requirements …
… So why not keep it British …
Our dedicated sales team are happy to offer a no obligation, free of charge quote… so why not get in touch and see how Sabrefix can help you?
When it comes to builders metal work… we have the answer!