What he means is, if I buy an iPhone built in China, this tariff won’t affect the price I pay.
But if I buy a phone built in America, with an imported processer, this tariff will make that phone more expensive.
Comment on Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics
artyom@piefed.social 3 weeks agoHuh? No, it's the opposite. You should really look up how tariffs work. They drive up prices for foreign products. Local products are unaffected, giving them a competitive advantage.
SaltSong@startrek.website 3 weeks ago
artyom@piefed.social 3 weeks ago
Not correct. Once again, tariffs only affect imported goods. If you buy an iPhone built in China (assuming you import to the US) you're going to pay a tariff on the device.
If you buy a phone built in America, with Chinese processors, you only pay tariff on the processor.
Wispy2891@lemmy.world 3 weeks ago
He meant that this is a disincentive to manufacture a phone in the USA.
Phone built in china: 30% tariff on the total assembled unit (this week is 30% or it changed again?)
Phone built in USA: 30% tariff on all the components because they’re made in China, 100% tariff on the processor, AND spend 1000% more in assembling the device because finding, training and paying skilled workers is way more expensive
Maybe there might be an incentive to move production to a country different from China, but the situation changes too wildly. The risk of spend millions to move production to Vietnam to get a lower rate, then a week later Trump gets diarrhea from eating a bahn mi and imposes an immediate 50% tariff as revenge
artyom@piefed.social 3 weeks ago
What? Are you putting American chips in these phones made in China? Why would you think they wouldn't be subjected to the chip tariff?
SaltSong@startrek.website 3 weeks ago
Right, but this tariff, at least as I understand it, is on chips imported as chips, not on products that contain chips. An iPhone will, of course, be subject to some other damn fool tariff, but not this specific one.
Of course, my understanding of this specific tariff may be wrong.
candyman337@lemmy.world 3 weeks ago
So you’re an AI right? Like no real person would believe this
artyom@piefed.social 3 weeks ago
WTF are you talking about? Did you not go to elementary school?
can@sh.itjust.works 3 weeks ago
I feel like there must be a miscommunication/misunderstanding here.
4am@lemmy.zip 3 weeks ago
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
artyom@piefed.social 3 weeks ago
Agreed.
bigfondue@lemmy.world 3 weeks ago
They increase demand for domestic goods and therefor raise the price of goods that were already more expensive than the imported goods.
DrFistington@lemmy.world 3 weeks ago
What about situations where there are no alternative us made products
artyom@piefed.social 3 weeks ago
Then there are no US products to affect?
Petter1@discuss.tchncs.de 3 weeks ago
Are you a troll?
Or do you really not get it??
artyom@piefed.social 3 weeks ago
I honestly don't get whatever "it" is. Again, if you don't understand what a tariff it, it's very simple to look it up. Don't take my word for it.
Boddhisatva@lemmy.world 3 weeks ago
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
artyom@piefed.social 3 weeks ago
Why wouldn't I be serious? If they're manufactured outside the US then they're obviously not manufactured in the US?
can@sh.itjust.works 3 weeks ago
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%?
floofloof@lemmy.ca 3 weeks ago
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.
artyom@piefed.social 3 weeks ago
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.