No, it won't. It will just raise prices.
Let's say you own a pen factory in China. It costs you $1 to make and ship 1 pen to the US where you sell it for $1.25. You're making a tidy 25% profit.
Then the US tells you you have to pay 25% more to ship your product to America.
Do you:
1) go through the very long process of selecting a site for a factory, getting all the permits, studies, and licenses to build a factory, build it, then recruit Americans (who expect to be paid more than your Chinese workers), and setup new supply lines for your raw materials (who also will have to setup new sites or pay more).
OR
2) do you say "f**k it" and raise your prices to cover the 25% tariff and keep doing what you've being doing and making a 25% profit?
Which do you do? Do you do a years long process that will cost you millions of dollars OR do you just raise your prices to cover that tax?
You know it's going to be 2. That pen is going to cost Americans more money.
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