President Donald Trump says he's imposing a 100% tariff on computer chips— a move that raises the specter of higher prices for electronics, autos, household appliances and other essential goods that depend on the processors.
Huh? No, it’s the opposite. You should really look up how tariffs work. They drive up prices for goods manufactured outside the US. Local goods are unaffected, giving them a competitive advantage.
I honestly can’t tell if you’re serious. You do know that the vast majority of the chips in all the devices you use are not manufactured in the US? Doubling the prices of the chips imported to manufacture devices here will obviously jack up the prices of those devices
The real problem seems to be that none of the news articles try to dig into what Trump’s vague and ambiguous wording actually means. They just report his nonsense verbatim. Does “building in the USA” mean building chips or building products containing chips?
The tariffs only apply to the imported products. That’s how tariffs work. If you import components into a US product then you only pay the tariff on those components, not the entire product.
It’ll probably be 100% tariff for the chip, and whatever the rate is for that country on the rest of the product. That’s assuming they go into that much detail, because if they don’t, it would be easy to dodge.
Pretty sure that’s their point. Say a product costs $100 dollars with no tariffs. If you import the product from the EU with a 15% tariff, it’s now $115 with tariffs (assuming no tariffs importing the chips into the EU). If you manufacture the product in the US, you need to pay 100% tariffs for all the chips. Obviously the impact depends on how much the chips cost relative to the entire product, but if the chips are half the cost ($50), then with a 100% tariff you’re now paying $150 for the product manufactured in the US.
Looking into it, the US implementation goes down into the components, so yes. Except, I believe it’d be $50 chip @ 100%, other components at whatever tariff rates they may have, and then the 15% per-country/region tariff applies to all of it on top. So if the other components have no tariffs, it’d be $172.50. I’m now wondering how expensive everything would end up if you have tariffs on materials as well.
In any case though, it becomes ludicrously expensive no matter what because you’re at most dodging the 15%.
EDIT: You can also dodge some of the tariffs if some percentage of the product is made in the US. I wonder if you’d be able to dodge the chip tariff if the materials for it were partially sourced from the US. If possible, that’d probably be cheaper for companies than actually trying to manufacture chips here.
EDIT 2: Actually your calculation may be right, I’m having a hard time finding how they’re actually meant to be calculated. Admittedly it seems a bit weird to me that the rate would override the country-specific rate and thus be the same for chips from the EU and China, but I suppose none of this makes sense in the first place.
Yeah, I’m guessing if you just imported the wafers but did packaging in the US, you could probably get an exception. But I’m not well-versed in the law to know.
Its really fucking lame to label everyone you don’t understand as a “troll/bot”.
I don’t know how many ways there are to explain that tariffs only impact imported goods. If it’s manufactured in the US, there is no tariff. This is, in fact, how tariffs work.
Sounds like you can save 85% by putting some googly eyes on the chip and calling it a finished product. It’s Chippy, the pointy pet that fits in your pocket.
If there is no alternative from US, the price of that product category as whole will rise, ultimately being paid by US citizens, meaning it is just a hidden tax rise 😘
Read all of the comments here. I’m not disagreeing that it would drive prices up, I’m disagreeing that there would be tariffs on American products, because that’s not how tariffs work.
This feels like semantics. Sure, domestically made products wouldn’t have tariffs directly applied. But they will still increase in price as a result of this policy.
Which most of us here have reduced to “prices will rise on USA made products as a result of these tariffs”.
So yes, tariffs aren’t applied to domestic productions directly, but the end product will still cost more and the reason will be the tariffs.
This is not semantics. The statement was “this will only affect goods manufactured in the US”. No amount of semantics will make that correct.
Otherwise yes, I agree.
To expand slightly, I don’t think tariffs are a inherently a bad idea. As part of a larger plan (in tandem with Biden’s “build back better” financial incentives and other measures) they can be effective. Yes, they will increase prices. That’s going to happen simply because the US generally doesn’t exploit exploit cheap/slave labor. At least nowhere near the level of China. In the long term, theoretically, it brings jobs back to America and the median income increases. If you want to talk about affordability there are an infinite number of ways to improve that as well.
However, the way Trump has implemented them is haphazard, lazy, and unclear. Without even a concept of a plan. And the next President could very well wipe them all out overnight, thereby fucking any factories that made the decision to migrate. So yeah, they will absolutely fail.
I think they assume that a USA device would have tariff only on the imported chips inside, whereas a device from another country would have its chips tariffed, as well as an additional tariff on the full device when imported.
I don’t know if this is the case or not because Trump is unclear and as others have pointed out this would be trivial to evade if components aren’t tariffed separately.
No matter what those in the USA would be paying more for electronics.
This was a few days ago but wasn’t it the case that imported chips to be used in American products would be tariffed at the time of import? Why wouldn’t that be the case?
Huh? No, it’s the opposite. You should really look up how tariffs work. They drive up prices for goods manufactured outside the US. Local goods are unaffected, giving them a competitive advantage.
I honestly can’t tell if you’re serious. You do know that the vast majority of the chips in all the devices you use are not manufactured in the US? Doubling the prices of the chips imported to manufacture devices here will obviously jack up the prices of those devices
Why wouldn’t I be serious? If they’re manufactured outside the US then they’re obviously not manufactured in the US?
I believe they’re referring to products made in the USA that contain chips.
As in importing chips would be 100% but importing a product that contains chips would be 15%?
The real problem seems to be that none of the news articles try to dig into what Trump’s vague and ambiguous wording actually means. They just report his nonsense verbatim. Does “building in the USA” mean building chips or building products containing chips?
The tariffs only apply to the imported products. That’s how tariffs work. If you import components into a US product then you only pay the tariff on those components, not the entire product.
Right.
Isn’t that in agreement with OP? Any products made in USA that contain chips will cost more to make due to the 100% tariff on the chips.
No, OP said it only applied to US products. It’s applied to all imported products. That’s what a tariff is.
So any product containing chips will have a 100% tariff applied?
Edit: product imported to the USA
It’ll probably be 100% tariff for the chip, and whatever the rate is for that country on the rest of the product. That’s assuming they go into that much detail, because if they don’t, it would be easy to dodge.
Yes, and since those products are only imported, it won’t affect US products, like I said.
Pretty sure that’s their point. Say a product costs $100 dollars with no tariffs. If you import the product from the EU with a 15% tariff, it’s now $115 with tariffs (assuming no tariffs importing the chips into the EU). If you manufacture the product in the US, you need to pay 100% tariffs for all the chips. Obviously the impact depends on how much the chips cost relative to the entire product, but if the chips are half the cost ($50), then with a 100% tariff you’re now paying $150 for the product manufactured in the US.
Surely the tariff would apply separately, so the imported cost would be $157.50 ($50 chip @ 100% tariff + $50 everything else @ 15% tariff).
If they didn’t apply separately, the tariff would be trivial to dodge.
Looking into it, the US implementation goes down into the components, so yes. Except, I believe it’d be $50 chip @ 100%, other components at whatever tariff rates they may have, and then the 15% per-country/region tariff applies to all of it on top. So if the other components have no tariffs, it’d be $172.50. I’m now wondering how expensive everything would end up if you have tariffs on materials as well.
In any case though, it becomes ludicrously expensive no matter what because you’re at most dodging the 15%.
EDIT: You can also dodge some of the tariffs if some percentage of the product is made in the US. I wonder if you’d be able to dodge the chip tariff if the materials for it were partially sourced from the US. If possible, that’d probably be cheaper for companies than actually trying to manufacture chips here.
EDIT 2: Actually your calculation may be right, I’m having a hard time finding how they’re actually meant to be calculated. Admittedly it seems a bit weird to me that the rate would override the country-specific rate and thus be the same for chips from the EU and China, but I suppose none of this makes sense in the first place.
Yeah, I’m guessing if you just imported the wafers but did packaging in the US, you could probably get an exception. But I’m not well-versed in the law to know.
Incorrect. Once again, tariffs are only for imported products. That’s how tariffs work.
I’m convinced you’re a troll/bot. That is not in fact how tariffs work since the chips are not made in the US.
Its really fucking lame to label everyone you don’t understand as a “troll/bot”.
I don’t know how many ways there are to explain that tariffs only impact imported goods. If it’s manufactured in the US, there is no tariff. This is, in fact, how tariffs work.
Sounds like you can save 85% by putting some googly eyes on the chip and calling it a finished product. It’s Chippy, the pointy pet that fits in your pocket.
What about situations where there are no alternative us made products
Then there are no US products to affect?
Are you a troll?
Or do you really not get it??
I honestly don’t get whatever “it” is. Again, if you don’t understand what a tariff is, it’s very simple to look it up. Don’t take my word for it.
If there is no alternative from US, the price of that product category as whole will rise, ultimately being paid by US citizens, meaning it is just a hidden tax rise 😘
I agree but that’s not what we were discussing
Read all of the comments here, there are many stating why this would drive costs way up.
Read all of the comments here. I’m not disagreeing that it would drive prices up, I’m disagreeing that there would be tariffs on American products, because that’s not how tariffs work.
This feels like semantics. Sure, domestically made products wouldn’t have tariffs directly applied. But they will still increase in price as a result of this policy.
Which most of us here have reduced to “prices will rise on USA made products as a result of these tariffs”.
So yes, tariffs aren’t applied to domestic productions directly, but the end product will still cost more and the reason will be the tariffs.
I think we agree now, yes?
This is not semantics. The statement was “this will only affect goods manufactured in the US”. No amount of semantics will make that correct.
Otherwise yes, I agree.
To expand slightly, I don’t think tariffs are a inherently a bad idea. As part of a larger plan (in tandem with Biden’s “build back better” financial incentives and other measures) they can be effective. Yes, they will increase prices. That’s going to happen simply because the US generally doesn’t exploit exploit cheap/slave labor. At least nowhere near the level of China. In the long term, theoretically, it brings jobs back to America and the median income increases. If you want to talk about affordability there are an infinite number of ways to improve that as well.
However, the way Trump has implemented them is haphazard, lazy, and unclear. Without even a concept of a plan. And the next President could very well wipe them all out overnight, thereby fucking any factories that made the decision to migrate. So yeah, they will absolutely fail.
They increase demand for domestic goods and therefor raise the price of goods that were already more expensive than the imported goods.
deleted by creator
So you’re an AI right? Like no real person would believe this
WTF are you talking about? Did you not go to elementary school?
I feel like there must be a miscommunication/misunderstanding here.
Agreed.
No, they’re trolling. There’s zero chance this was explained this many times and they’re still fighting like they don’t understand what is being said
I think they assume that a USA device would have tariff only on the imported chips inside, whereas a device from another country would have its chips tariffed, as well as an additional tariff on the full device when imported.
I don’t know if this is the case or not because Trump is unclear and as others have pointed out this would be trivial to evade if components aren’t tariffed separately.
No matter what those in the USA would be paying more for electronics.
“Trolling” = discussing facts? You are the one who doesn’t understand. It’s very simple: US tariffs do not apply to US products.
This was a few days ago but wasn’t it the case that imported chips to be used in American products would be tariffed at the time of import? Why wouldn’t that be the case?