“Cut and sew is not the type of work Americans want,” Smeaton says. “In China, labor costs are $2 to $3 an hour. In America they are $20 an hour.” He explains that tariffs would have to rise to 500% to make reshoring worth considering. Many firms would be out of business long before then.
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Trump reduced tariffs on Vietnam and removed that country from the United States’s export controls list after the Hanoi government approved his family business’s $1.5bn golf course and real estate project.