The Peter Zeihan Podcast Series Of Tariffs, Manufacturing and PSAs || Peter Zeihan
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Apr 18, 2025 AI Snips
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Manufacturing Shift Is Long-Term
- Moving manufacturing from China to the U.S. takes 12-15 years due to complex supply chains and industrial development. - Tariffs of 145% plus make quick reshoring impossible and discourage urgent investment.
Tariff Instability Freezes Investments
- Policy uncertainty with 92 tariff changes in six weeks stalls major manufacturing investments. - Clarity is essential before companies commit to reshore multi-billion-dollar production.
China Losing Cost Advantage
- Chinese labor costs now exceed Mexican costs by 2 to 2.5 times and skill levels lag. - Global manufacturers are shifting from 'China plus one' to 'anything but China' strategies.