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.
Comment on Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics
can@sh.itjust.works 3 weeks agoI 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%?
artyom@piefed.social 3 weeks ago
can@sh.itjust.works 3 weeks ago
The tariffs only apply to the imported products. That’s how tariffs work.
Right.
If you import components into a US product then you only pay the tariff on those components, not the entire product.
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.
artyom@piefed.social 3 weeks ago
Isn't that in agreement with OP?
No, OP said it only applied to US products. It's applied to all imported products. That's what a tariff is.
can@sh.itjust.works 3 weeks ago
So any product containing chips will have a 100% tariff applied?
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.
sugar_in_your_tea@sh.itjust.works 3 weeks ago
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.
arcterus@piefed.blahaj.zone 3 weeks ago
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.
artyom@piefed.social 3 weeks ago
If you manufacture the product in the US, you need to pay 100% tariffs for all the chips.
Incorrect. Once again, tariffs are only for imported products. That's how tariffs work.
arcterus@piefed.blahaj.zone 3 weeks ago
I'm convinced you're a bot. That is not in fact how tariffs work since the chips are not made 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.
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.