Trump-era tariffs on Chinese goods could raise costs 10-40%, making it an existential threat for brands still manufacturing there. Competitors who've already moved production avoid these penalties, while early relocators gain competitive advantage.
Everyone wants out of China. Where do you see the future of manufacturing going? If you don't stay ahead of this, you will quickly go out of business. Yeah. Why? Trump tariffs. So every brand knows if it comes from China, he may do 10% more, 40% more. They can't sell the product like that.
Yeah.
And their competitor who's already outside of China doesn't have to do that. It is an existential threat to your brand if you don't exit fast. So that's what's happening.
So setting up manufacturing for things that are mainly in China that are going to move outside of China is a big opportunity right now.