MOSCOW, April 11. /TASS/. Global companies will not move production to the United States, as American President Donald Trump insists, said Alexander Firanchuk, a senior researcher at the Gaidar Institute's For Economic Policy.
Earlier, the Financial Times reported citing experts that it would take American corporation Apple three years and cost it $30 billion to transfer even 10% of the production capacity and supply chains it needs to produce the iPhone to the United States from Asia.
"The main reason companies are unlikely to seriously consider moving production to the United States now is the extremely high level of regulatory uncertainty. No one will decide to invest tens of billions of dollars when the rules of the game can change dramatically in just one week," the expert said.
According to him, even if America decides to keep its tariffs in place for the majority of countries, it will take a long time to transfer part of the production to the United States.
"For objective reasons - salaries, rent, logistics and raw materials - American manufacturing will not be able to compete effectively with Southeast Asia in most consumer goods," Firanchuk said.
He suggested that if the companies do transfer production to the United States, they will use it to sell only to American consumers, and not abroad.
"The American market, despite its scale, is still smaller than the global one, and large production facilities will remain in Asia," he said.