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this post was submitted on 06 Aug 2025
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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.
What he means is, if I buy an iPhone built in China, this tariff won't affect the price I pay.
But if I buy a phone built in America, with an imported processer, this tariff will make that phone more expensive.
Not correct. Once again, tariffs only affect imported goods. If you buy an iPhone built in China (assuming you import to the US) you're going to pay a tariff on the device.
If you buy a phone built in America, with Chinese processors, you only pay tariff on the processor.
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
They increase demand for domestic goods and therefor raise the price of goods that were already more expensive than the imported goods.
I honestly can't tell if you're serious. You do know that the vast majority of the chips in all the devices you use are not manufactured in the US? Doubling the prices of the chips imported to manufacture devices here will obviously jack up the prices of those devices
Why wouldn't I be serious? If they're manufactured outside the US then they're obviously not manufactured in the US?
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 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.
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.
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
Yes, and since those products are only imported, it won't affect US products, like I said.
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.
Right, but a microchip is quite a different beast than raw steel. Nobody is going to buy a muffler to melt down to produce something else, but they might buy a PC to scavenge for parts. It's relatively easy to pull a chip off a board, whereas reforming steel is a lot more intensive.
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.
Incorrect. Once again, tariffs are only for imported products. That's how tariffs work.
I'm convinced you're a troll/bot. That is not in fact how tariffs work since the chips are not made in the US.
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.
What about situations where there are no alternative us made products
Then there are no US products to affect?
Are you a troll?
Or do you really not get it??
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.
If there is no alternative from US, the price of that product category as whole will rise, ultimately being paid by US citizens, meaning it is just a hidden tax rise 😘
I agree but that's not what we were discussing
Read all of the comments here, there are many stating why this would drive costs way up.
Read all of the comments here. We were not discussing driving up prices, we were discussing tariffs on American products, which don't exists, because that's not how tariffs work.
So you're an AI right? Like no real person would believe this
WTF are you talking about? Did you not go to elementary school?
I feel like there must be a miscommunication/misunderstanding here.
Agreed.
No, they’re trolling. There’s zero chance this was explained this many times and they’re still fighting like they don’t understand what is being said
"Trolling" = discussing facts? You are the one who doesn't understand. It's very simple: US tariffs do not apply to US products.