Trump says he plans to put a 100% tariff on computer chips, likely pushing up cost of electronics
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WTF are you talking about? Did you not go to elementary school?
I feel like there must be a miscommunication/misunderstanding here.
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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%?
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. Does "building in the USA" mean building chips or building products containing chips?
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My hope is that he signs the pardon before she testifies, and then she burns him down on the stand.
She would not survive that.
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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.
So any product containing chips will have a 100% tariff applied?
Edit: product imported to the USA
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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.
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 the 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.
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So any product containing chips will have a 100% tariff applied?
Edit: product imported to the USA
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.
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My hope is that he signs the pardon before she testifies, and then she burns him down on the stand.
Why would he pardon her? Prison is sheer hell and she got a huge upgrade. Fuck around and they can take that back. They got all the leverage they need without the screams of outrage a pardon would bring.
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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 the 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.
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.
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Wouldn't this only affect goods manufactured in the USA? If a finished product containing chips from say, Europe, were to land on USA shores it would only have a 15% tariff right?
Why does trump hate American manufacturing?
I'm guessing the chip in the finished product would be taxed separately, otherwise it would be trivial to dodge the tariff (just package the chip in a different "finished product" and move it to a US-made product).
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I honestly don't get whatever "it" is. Again, if you don't understand what a tariff is, it's very simple to look it up. Don't take my word for it.
Read all of the comments here, there are many stating why this would drive costs way up.
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Just wait until he has a conversation with the AI freaks in his admin. He changes policy based on the last person he talks to. What an idiot.
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Huh? No, it's the opposite. You should really look up how tariffs work. They drive up prices for goods manufactured outside the US. Local goods are unaffected, giving them a competitive advantage.
They increase demand for domestic goods and therefor raise the price of goods that were already more expensive than the imported goods.
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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.
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.
In any case though, it becomes ludicrously expensive no matter what because you're at most dodging the 15%.
EDIT: You can also dodge some of the tariffs if some percentage of the product is made in the US. I wonder if you'd be able to dodge the chip tariff if the materials for it were partially sourced from the US. If possible, that'd probably be cheaper for companies than actually trying to manufacture chips here.
EDIT 2: Actually your calculation may be right, I'm having a hard time finding how they're actually meant to be calculated. Admittedly it seems a bit weird to me that the rate would override the country-specific rate and thus be the same for chips from the EU and China, but I suppose none of this makes sense in the first place.
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In lighter news he’s 78 with congestive heart failure, obvious mental decline, incontinence and obesity
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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.
In any case though, it becomes ludicrously expensive no matter what because you're at most dodging the 15%.
EDIT: You can also dodge some of the tariffs if some percentage of the product is made in the US. I wonder if you'd be able to dodge the chip tariff if the materials for it were partially sourced from the US. If possible, that'd probably be cheaper for companies than actually trying to manufacture chips here.
EDIT 2: Actually your calculation may be right, I'm having a hard time finding how they're actually meant to be calculated. Admittedly it seems a bit weird to me that the rate would override the country-specific rate and thus be the same for chips from the EU and China, but I suppose none of this makes sense in the first place.
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.
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Just tell him computer chips are made of McDonalds and diet coke, several problems will solve themselves shortly after.
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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.
I import exhaust parts made from steel. They are tarriffed as exhaust parts. Raw steel has its own import HTS code.
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It's a tax of 100% on chips being imported to the USA, having been manufactured elsewhere. The idea is that it should force companies to set up their own chip manufacturing in the USA. But that's expensive and slow to do, and requires a lot of specialized engineering talent, so US-based electronics companies will somehow have to survive through years of paying twice as much for the chips they build into their products. This will mean significant price increases for Americans buying electronics, as the unavoidable costs are passed on.
Expecting companies to build their own chip foundries and manufacture their own chips to avoid tariffs is as unrealistic as expecting poor people to singlehandedly use nuclear fission to create atoms from nothing to materialize into existence all the food they can't afford. Even if these American "use AI for everything" megacorp regimes that can't even write a mouse driver that's under 1gb actually put their big swingin' dicks back into their pants long enough to actually figure out how they could be efficient enough use the more achievable 90nm and 65nm chips, even that is so unachievable they'd never find a way to mass produce them affordably. Russia supposedly managed to diy their own 350nm chips which is barely even mid 90s Pentium 1 era bullshit and even that's probably fake propaganda that, best case, followed some half successful low volume experiments in a lab.
The only purpose of this is to cause mass calamity and force people further into poverty while corporations have an excuse to make everything even more expensive without giving anything back to society in return.
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Wouldn't this only affect goods manufactured in the USA? If a finished product containing chips from say, Europe, were to land on USA shores it would only have a 15% tariff right?
Why does trump hate American manufacturing?
The existing tariffs somehow exclude chips or phones/computers with chips in them. This would be a separate category, like metals.
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What's interesting about this is that Ghislaine Maxwell just got a transfer to a cushy facility in exchange for what is likely to be heavily coached testimony about how Donald Trump totally didn't rape children.
I read those news in a way that she's now in a low risk facility with plenty of other people around who might casually remove a witness, rather than stuck in isolation in a max security prison where every 'suicide' would be met with public outrage.