Question: Global perspective: Since 2 0 1 8 US unilaterally placed tariffs against products coming from China ( 3 3 % ) . In order to

Global perspective: Since 2018 US unilaterally placed tariffs against products coming
from China (33%). In order to ensure supply protect; this OEM had agreed to cover
up to 50% of that cost, Supplier would pay 50%.
As a corrective action, supplier would like to move their assembly line from China to
Mexico to avoid that cost.
Current data: $25 usd per 450W/Hr Pump. 8 years program. 300,000 unit/Year.
Production line $1.5 M. Expenses 40% of income. Taxes. 15%
Please provide IRR, NPV and your recommendation.
Please consider logistic is the following: OEM pick up parts in a warehouse coming
from China.
Plan b,
Resourcing from Chinese Supplier to Mexican Supplier. Bombas Tlalnepantla Inc.
However BTI has an engineering cost of 5,000,000 usd
 Global perspective: Since 2018 US unilaterally placed tariffs against products coming

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