Talked to a few people in India who manufacture and export clothing to US brands. 

The most likely outcome if tarriffs stick for a year is that manufacturing still stays offshore, but the average American gets lower quality stuff for the same price.

Flexport's team was able to reverse engineer the formula the Administration used to generate the "reciprocal tariffs." 

It's quite simple, they took the trade deficit the US has with each country and divided it by our imports from that country. 

The chart below shows the https://t.co/01bUpfKgk8

This is nuking every single supply chain that passes through the US in any way, under the illusion that 45 years of deindustrialization can be fixed in one day of 45% tariffs.

Countless low-margin businesses, including US exporters, will be pushed into unprofitability.

Balaji

Talked to a few people in India who manufacture and export clothing to US brands. 

The most likely outcome if tarriffs stick for a year is that manufacturing still stays offshore, but the average American gets lower quality stuff for the same price. 

https://x.com/balajis/status/1907645443221463105

Technowatermelon. Elder Millenial. Building Farcaster. 

nf.td/varun

most of the big brands are crap anyways in terms of quality, so I don't think that many people are going to care. 

if they pass on part of the tariff to customers and no other measures are taken, then prices will inflate by some palatable % - but still painful. 

but if they also do tax cuts, as stated, then it could be an interesting equilibrium point.  

people will pay more for higher quality brands, and certain elements of more localized manufacturing will be big marketing pulls. 

like how can people feel sorry for some of the major fashion labels and apparel companies that offshore majority of production?