|Many of the supply chains are moving from China to Mexico, which we could say is "America-adjacent". Most maquilladores are located within 3 miles south of the American border. We can't ship our homes, restaurants, and hotels to Mexicali, so the gardeners, housekeepers, and chefs working illegally at our homes restaurants and Trump resorts come to America.|
The fact that wages just 3 miles south of the US border are 53% less than the wages in rural China, explains why supply chains began to move from China to Mexico six years before Donald Trump was elected. - fortune.com
Also for a lot of products, the faster turn-around time from Mexico is really important compared with 5 week container-ship time from China.
CNIME said that the average maquiladora wage is 70 pesos per day (Mexico $8.50 for a standard 12 hour work-day). - maquiladoras-educateyourself.weebly.com
Wages in urban China are now 20 Yuan per hour, ($2.89 per hour), while even in Liaoning, rural noutheastern China the minimum hourly wage is 10.50 Yuan / $1.52 per hour - or (China $18.24 for a 12 hour day). statista.com
In my opinion the primary problem we need to solve with China is enforcement of US and European intellectual property, and the disclosure of communist party subsidies to China's various businesses - so we can set appropriate countervailing tariffs. The Commerce Department's "Listed Entities" is a lot more effective than 25% tariffs, but even applying both I assume China won't agree.