Talked to a few people in India who manufacture and export clothing to US brands. 

The most likely outcome if tarriffs stick for a year is that manufacturing still stays offshore, but the average American gets lower quality stuff for the same price.

Flexport's team was able to reverse engineer the formula the Administration used to generate the "reciprocal tariffs." 

It's quite simple, they took the trade deficit the US has with each country and divided it by our imports from that country. 

The chart below shows the https://t.co/01bUpfKgk8

This is nuking every single supply chain that passes through the US in any way, under the illusion that 45 years of deindustrialization can be fixed in one day of 45% tariffs.

Countless low-margin businesses, including US exporters, will be pushed into unprofitability.

Balaji

Talked to a few people in India who manufacture and export clothing to US brands. 

The most likely outcome if tarriffs stick for a year is that manufacturing still stays offshore, but the average American gets lower quality stuff for the same price. 

https://x.com/balajis/status/1907645443221463105

Technowatermelon. Elder Millenial. Building Farcaster. 

nf.td/varun

Why did USA outsource the industry to other countries in the first place? 

In my opinion, balajis is overreacting and emotional in the attached tweet and this actually feels unusual seeing him talking this way.