The Verkhovna Rada of Ukraine's Committee on Finance, Tax and Customs Policy listed the key problems with the idea of United States President Donald Trump to return the production of goods to the United States after introducing new tariffs for a number of countries.
This was reported by the deputy chairman of the relevant committee, People's Deputy Yaroslav Zheleznyak, on Telegram.
He noted that Trump has urged businesses to move production to the US, but businesses will face long-term difficulties.
"Trump called on businesses to move production to the US... I'm really curious how it's going to work for them. First of all, it's a long time...", the People's Deputy said.
So, according to him, the relevant procedure for the plant will take at least 2-3 years.
In addition, raw materials will continue to arrive with duties. Although the US market is large, it will be limited to this country only.
The cost of labor will also be a challenge, as labor costs in Vietnam are much cheaper than in the United States.
"And lastly, business invests when there is some stability. And here it is obvious that any change of administration to a democratic one or even a "divided government" can roll back all these duties in one day. And a recession is already very much expected... But this is theory, let's look at practice soon...", Zheleznyak said.
As is known, on April 2, the US president legalized the introduction of tariffs on imports of goods from more than 180 countries. He explained the corresponding step by the need to respond to "unfair tariffs" that other countries apply to American goods.
In particular, the lion's share of iPhone models are manufactured in China, on whose imports the highest tariffs were imposed. After that, Trump advised moving iPhone manufacturing to the United States.
Analysts estimate that consumer products like the iPhone could skyrocket in price by up to 40% if Apple passes the costs on to consumers.
As Apostrophe wrote, the US has imposed tariffs on goods from almost all countries in the world. For Ukraine, as for many others, the tariff will be 10%, but for China the rate is set at 34%, and for Vietnam – a total of 46%.