Alexander Firanchuk: “Trump will not succeed in getting production transferred from Asia to the US”
Alexander Firanchuk, Senior Researcher at the Gaidar Institute’s International Trade Department, believes that global companies will not move production to the United States, as American President Donald Trump insists. The expert’s opinion is quoted by TASS.
«The main reason why companies are unlikely to seriously plan to move production to the US now is the extremely high uncertainty of the rules of the game. No one will make investment decisions worth tens of billions of dollars when conditions change dramatically in just one week," the expert believes.
According to him, even if the situation stabilizes at the level of high US tariffs against a significant number of countries, it will take a long time to transfer part of production to the US.
«At the same time, for objective reasons — the level of wages, rental costs, logistics and raw materials — American production of most consumer goods will not be able to compete effectively with Southeast Asia," said Alexander Firanchuk.
Thus, the expert emphasized, if capacities will be transferred to the US, then only in the volumes necessary to meet domestic demand. «The American market, despite its scale, is still smaller than the total market of the rest of the world, and large production facilities will remain in Asia," the Gaidar Institute expert explained.
Friday, 11.04.2025