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He will backtrack when new inflation figures hit. It might take 3-6 months, but China definitely has the stronger hand, by far.
Trump can avoid the inflation by allowing Chinese goods to come through countries like Vietnam or Mexico. This is basically the status quo.
It allows Trump to save face without huge inflation for US consumers.
We pay tarrif based on country of manufacture not where it ships from. Trust me I’m looking everywhere for loopholes right now.
Correct, so what China does is ship almost completed stuff to Vietnam, they do the final piece of manufacturing and export that.
It's not as easy as a transshipment, but for the longer term it works out.