So I work for a non-automotive manufacturer (but we do sell some to the auto companies, in the form of instrumentation). We purchase about 6 injection mold tools a year for new product design. We used to purchase from the US but switched to China. US costs would run approximately $240k and take 20-24 weeks. China would run $220k and 12-14 weeks. It was mainly schedule that drove us to China. We would ship the tools to a US based injection molder.
So now with the tariffs in effect, we would pay a 20% penalty or about 45k if we imported the tools in from China. So we are now considering leaving the tools in China and having the parts molded over there. Then we only pay the 20% tariff on the cost of the parts as they are imported.
So in effect, unless the government closes this loophole, the tariffs are going to cause a net LOSS of US based jobs.
So now with the tariffs in effect, we would pay a 20% penalty or about 45k if we imported the tools in from China. So we are now considering leaving the tools in China and having the parts molded over there. Then we only pay the 20% tariff on the cost of the parts as they are imported.
So in effect, unless the government closes this loophole, the tariffs are going to cause a net LOSS of US based jobs.