New York Times: Many companies remain intent on diversifying where they source their products and are cautious about tying their fortunes to China over the longer term. Yet the current system of tariffs removes some of the urgency for companies to find factories outside China. It also chips away at the economic advantage that companies had expected from moving factories to Brazil, Vietnam and India.
“There isn’t a great incentive, if this is the final tariff structure, to reallocate out of China,” said Brad Setser, an economist at the Council on Foreign Relations. He argued that the tariff differential between China and other countries was much smaller now than Mr. Trump had suggested in his 2024 campaign, when he proposed putting a 60 percent tariff on Chinese goods and a 10 to 20 percent tariff on products from the rest of the world…