this post was submitted on 06 Aug 2025
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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
What? Are you putting American chips in these phones manufactured in China? Why would you think they wouldn't be subjected to the chip tariff?
If you manufactured it in the USA there are no tariffs. I don't know why this is so hard to understand. Manufactured in the USA = no tariffs. Manufactured outside the USA = tariffs. It's really that simple.
Labor has always been more expensive in the US, that's why tariffs exist.
there's a youtube video from "smarter every day" that showed his attempt to make something 100% in the USA.
The item was just a barbecue scrubber, with just a few components.
He needed a simple screw... NOBODY made that in the US..
He needed a simple plastic knob... NOBODY made that in the US (he bought 10k "american" knobs but once arrived there was a MADE IN COSTA RICA sign)
He wanted to make injection molds in the US.... NOBODY did that, he had to find some retired expert to help him.
So, if you assemble stuff in US, you still need to import EVERYTHING, paying the same tariff and with more expensive labor. Tariffs need to be carefully considered and target a specific item in order to have some positive effect
I don't understand what any of that has to do with this discussion.
Serious or trolling?
You said:
Then I explained to you why it works like this:
Manufactured in the USA = tariffs and expensive labor.
Manufactured outside the USA = tariffs and cheap labor.
It’s really that simple.
Tariffs on everything is an incentive on manufacturing outside the USA as the supply chain is missing and all the parts need to be imported too.
The story would be different if those were targeted tariffs on specific products. In that case it would work in the opposite way
God, this response is just fucking lazy and boring. You could at least make interesting when you lob ad hominems because you don't understand the conversation. We were not discussing the merits of tariffs, we were discussing the facts. And the fact is that tariffs only negatively impact imported goods, by nature of being a tariff...