Comment on Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics

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Wispy2891@lemmy.world ⁨1⁩ ⁨day⁩ 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

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