Donald I, emperor of the world.

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BoldonLad

Old man on a bike. Not a member of a clique.
Location
South Tyneside
And Americans must be prepared to pay more than double for their shiny Iphones.

Does that mean the rest of the world will still be able to buy shiney made in China iPhones etc?
 

First Aspect

Über Member
Most chips for iPhone and Macs are made in Taiwan.

I don't think any are made in the US.
I know.

But he has waived tariffs where some chips are manufactured in the US, regardless of whether that manufacturer is importing them for most purposes.

I think.

If so, then the US hasn't been liberated entirely from the tyranny of low cost efficient manufacturing abroad leading to cheap consumer goods in the US.
 

Pblakeney

Senior Member
I know.

But he has waived tariffs where some chips are manufactured in the US, regardless of whether that manufacturer is importing them for most purposes.

I think.

If so, then the US hasn't been liberated entirely from the tyranny of low cost efficient manufacturing abroad leading to cheap consumer goods in the US.

I'm confused (again). If they are manufactured in the US they can't be importing the same items? The imported chips will be hit by tariffs to be used in US manufactured products. Trump wants chip manufacturing moved to the States so no imports.
 

First Aspect

Über Member
I'm confused (again). If they are manufactured in the US they can't be importing the same items? The imported chips will be hit by tariffs to be used in US manufactured products. Trump wants chip manufacturing moved to the States so no imports.
No. There are no tariffs on a lot of imported chips, where those importers make something in the US.

The whole point of tariffs, supposedly, is to penalise manufacture abroad and supposedly level the playing field and promote domestic US manufacture. This subtle change in policy doesn't achieve that, and for good reason, because iPhone would cost 5 times as much.

So the change itself illustrates the folly of the whole policy, and also clearly indicates that a good deal of lobbying has taken place.
 
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Psamathe

Über Member
No. There are no tariffs on a lot of imported chips, where those importers make something in the US.
Importing chips as chips into US would only be for manufacture in the US. Why would a company import chips and not make something with them?

Does it include product containing chips? eg most washing machines will contain semi-conductors so does this new tariff apply to washing machines? fridges? etc.

And as a import tariff seems like ludicrous admin where specific companies are exempt where they have committed to build factories yet if they don't then meet that commitment they'll retrospectively have to pay the tariff. And who decides if the commitment to build a factory is enough to exempt them eg Apple $100m commitment maybe they are looking at the $100m as cheaper than the tariffs? (no idea on the numbers on that)

Ian
 

CXRAndy

Legendary Member
Shall we look at next year's price for the iPhone

Here's a current price list

1000024951.jpg
 

First Aspect

Über Member
I don't know the numbers to be honest, but the original argument for tariffs was shortsightedly not about how any imports were then used, and nor is it now.

All the orange one has done is exempted tariffs on chips where there is *some* manufacture of chips in the US.

An analogy would be to remove the much ridiculed banana import tariffs because someone planted a banana palm in the US.
 
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