Originally Posted by
jdawginsc
My question would be this…for factories built in the US by foreign companies (not because it is cheaper, but goodwill), will they need to pay the tariffs for imported producer parts (capital goods) to employ American workers?
And for American companies who built factories elsewhere, do they pay tariffs since their goods are made elsewhere in “tariffed” countries (like the deserted island).
Yes to both questions. Answer is based professional experience in this area.
On the question about American overseas factories, while it varies with the types of product, many US companies use contract manufacturers rather than set up factories that they own. This allows them to avoid start up costs, and to shift production locations as needed any number of reasons. For example, Apple products come from Foxconn and others. Nike uses a similar model. Same holds for the bike companies.