Kraft Heinz just announced plans to invest $3 billion in its U.S. plants. But companies that make clothes and toys, which have low margins and are difficult to produce with robots, will have a harder time relocating.
Everyone from manufacturers to retailers are scrambling to take advantage of this trade war truce, but some businesses are still putting future plans on hold
The U.S. and China have agreed to temporarily rollback on some tariffs. Adam Posen, president of the Peterson Institute for International Economics, puts today’s deal into context.
“What these factory owners are making is a point that, even with the tariff, it is still going to be drastically cheaper than when you’re buying from the brand directly,” said Caiwei Chen, a China reporter for MIT Technology Review.