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.
Comment on Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics
arcterus@piefed.blahaj.zone 3 weeks agoPretty 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.
artyom@piefed.social 2 weeks ago
arcterus@piefed.blahaj.zone 2 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.
artyom@piefed.social 2 weeks 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.
arcterus@piefed.blahaj.zone 2 weeks ago
My dude, the chips aren't manufactured in the US. If the tariffs don't apply to the chips that are inherently imported from outside the US since basically only TSMC and Samsung make them at this point, then there is no tariff at all. Companies in the US import the chips, then use the imported chips as part of their products. All the companies in the US do is assemble the imported parts (and sometimes not even that).
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.
sugar_in_your_tea@sh.itjust.works 2 weeks 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.