Comment on Smartphones and computers are now exempt from Trump’s latest tariffs.
Mavytan@feddit.nl 2 days agoI’m not so sure about that. With tarrifs of over 100%, manufacturers can add over a 100% to the cost of production and still come out ahead… Alternatively they could move production, but that only makes sense to do if it’s cheaper than adding just enough electronics to make the items exempt from tarrifs
toofpic@lemmy.world 2 days ago
“with tariffs…manufacturers can add…come out ahead” - do you imply manufacturers are getting anything? This is not them who rsises the prices, they won’t see the money
desktop_user@lemmy.blahaj.zone 2 days ago
if they reduce the tariff on their product and charge the same post tariff price they could make more profit even with higher manufacturing costs.
Mavytan@feddit.nl 2 days ago
That’s more or less my point. They won’t come out ahead but at least they won’t have to raise the prices as much so they’ll be more completive compared to manufacturers that don’t include electronics
MDCCCLV@lemmy.ca 1 day ago
That won’t work, because building a new factory takes 2-5 years and if the tariffs drop at any point then you’re stuck with a product way more expensive that nobody will buy.
toofpic@lemmy.world 1 day ago
They? They like “manufacturers”? They can’t reduce tariffs, the tariffs exist against them, it’s only the orange who introduced them can reduce them.