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.
Comment on Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics
artyom@piefed.social 1 day agoThe 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.
arcterus@piefed.blahaj.zone 1 day ago
sugar_in_your_tea@sh.itjust.works 1 day 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 1 day 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.
sugar_in_your_tea@sh.itjust.works 1 day ago
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.
artyom@piefed.social 1 day 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 1 day 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.
artyom@piefed.social 1 day ago
Its really fucking lame to label everyone your 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.
some_designer_dude@lemmy.world 1 day 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.
can@sh.itjust.works 1 day 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.
artyom@piefed.social 1 day ago
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 1 day ago
So any product containing chips will have a 100% tariff applied?
sugar_in_your_tea@sh.itjust.works 1 day ago
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.
artyom@piefed.social 1 day ago
Yes, and since those products are only imported, it won't affect US products, like I said.