U.S. Tariffs Could Decrease American Manufacrturing, Says Flexport CEO

Impact of Tariffs on Manufacturing - Tariffs are projected to decrease American manufacturing, contrary to potential expectations [1] - Globally interconnected supply chains mean tariffs on imported components increase production costs for US manufacturers, making exports less competitive [2] - Producing goods in locations without tariffs, such as Mexico, can result in lower costs, encompassing both labor and tariff expenses [2] Challenges for Exporters - Tariffs negatively impact exporters by adding complexity and increasing costs [3] - The US labor cost is generally not competitive for a wide range of products [3] Uncertainty and Market Paralysis - Lack of clarity regarding tariff implementation paralyzes decisions to move manufacturing back to the US [3]