Comment on Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics
Boddhisatva@lemmy.world 3 weeks agoI 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.
can@sh.itjust.works 3 weeks ago
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.
arcterus@piefed.blahaj.zone 3 weeks ago
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 thr 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.
some_designer_dude@lemmy.world 3 weeks ago
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.