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this post was submitted on 06 Aug 2025
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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?
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