4 ms·

Does that materially change whether or not it does or doesn't make it more expensive to build products in America that rely on Chinese components?

nodesocket 8y ago
I can't speak specifically to these new items, but just to give an example, many auto experts came out and said the steel and aluminum tarrifs would raise car prices, but so small it's a rounding error. Typically under $100 or $200 per car. Point being, people jump to conclusions without seeing the impact on the total cost of goods. Meanwhile dismissing the point, putting more capital into the pockets of US based companies which improves the economy.
- kayfox 8y ago
  This will eat into profits for US based electronics manufacturers, who in many cases may already be under contract for assemblies or finished products at particular price points. It will also make it even more uneconomical to manufacture electronics assemblies or finished products in the US, a business that has been drying up for years.
- sharemywin 8y ago
  Because china won't retaliate? Which won't cause us to retaliate? seeing a pattern?
- HeyLaughingBoy 8y ago
  You can't just look at the end product, you have to see the tariffs' impact all the way down the supply chain. The effect on the final product may be minimal but the intermediate manufacturer of, e.g., the rails that hold the car seats in place may end up having to lay off half their workforce. If the product that makes up 80% of your business has a 15% margin and now your main raw material input rises in price by 25%, you could be in serious trouble.
cabaalis 8y ago
So let me ask you, do you think the people in charge do not know this? Do you buy into the media push that Trump is a petulant, reactive child who does not listen to advisers? Do you think our government is truly led by the whims of a single individual? Tariffs are a political tool. There is some objective here that is not being publicly outlined because it would defeat the purpose of the strategy. Example: Other countries involved in this "trade war" are placing tariffs specifically on bourbon. Why? What do they have to gain by that sort of rule? Absolutely nothing, other than putting political pressure on the representatives and senators from Kentucky. (Source: NPR, radio earlier this month where a representative of Canada said exactly this. I wish I could find the audio.) This is the very definition of other sovereign countries interfering with American politics. I would bet that the tariffs being placed here locally are designed to have similar effects.
- tacomonstrous 8y ago
  >you buy into the media push that Trump is a petulant, reactive child who does not listen to advisers? You don't have to buy anything. Just listen to the man himself and it's crystal clear.
- dnomad 8y ago
  Your argument is that there's some super-intelligent strategy at work here but it must be kept secret in order for it to work. This is literally baseless nonsense. America has a single goal that is beyond transparent: prevent the rise of Chinese apex-technological manufacturers. Everything was okay when China was making shoes and Christmas lights but now they're fabricating increasingly sophisticated computer chips [0], producing more electronic cars than the rest of the world combined [1], and kicking out all sorts of fancy 5G telecom equipment that does more but costs significantly less than what Western manufactuers can offer [2]. The "strategy" here is too little and far too late. Trump's only victory here will be, like so many other victories, purely symbolic: his base might get riled up and support him for taking on the "Chinese" who "stole" all their jobs... but China's competitiveness here won't be affected. Cutting off Americans from China's competitive electronics will just drive up prices in America and make American companies less competitive on the global market. The rest of the world (the other 7.3 billion on the planet) absolutely love China's cheap but capable electronic products. The only thing at this point that will actually stop China's growth here is literal bombs and tanks. [0] http://mckinseychina.com/whats-next-for-chip-makers-in-china/ http://mckinseychina.com/whats-next-for-chip-makers-in-china... [1] https://nextshark.com/china-now-makes-electric-cars-every-country-combined/ https://nextshark.com/china-now-makes-electric-cars-every-co... [2] https://telecom.economictimes.indiatimes.com/news/mobile-network-equipment-makers-eye-5g-windfall/63136118 https://telecom.economictimes.indiatimes.com/news/mobile-net...

nodesocket 8y ago

I can't speak specifically to these new items, but just to give an example, many auto experts came out and said the steel and aluminum tarrifs would raise car prices, but so small it's a rounding error. Typically under $100 or $200 per car. Point being, people jump to conclusions without seeing the impact on the total cost of goods. Meanwhile dismissing the point, putting more capital into the pockets of US based companies which improves the economy.

kayfox 8y ago
This will eat into profits for US based electronics manufacturers, who in many cases may already be under contract for assemblies or finished products at particular price points. It will also make it even more uneconomical to manufacture electronics assemblies or finished products in the US, a business that has been drying up for years.
sharemywin 8y ago
Because china won't retaliate? Which won't cause us to retaliate? seeing a pattern?
HeyLaughingBoy 8y ago
You can't just look at the end product, you have to see the tariffs' impact all the way down the supply chain. The effect on the final product may be minimal but the intermediate manufacturer of, e.g., the rails that hold the car seats in place may end up having to lay off half their workforce. If the product that makes up 80% of your business has a 15% margin and now your main raw material input rises in price by 25%, you could be in serious trouble.

cabaalis 8y ago

So let me ask you, do you think the people in charge do not know this? Do you buy into the media push that Trump is a petulant, reactive child who does not listen to advisers? Do you think our government is truly led by the whims of a single individual? Tariffs are a political tool. There is some objective here that is not being publicly outlined because it would defeat the purpose of the strategy. Example: Other countries involved in this "trade war" are placing tariffs specifically on bourbon. Why? What do they have to gain by that sort of rule? Absolutely nothing, other than putting political pressure on the representatives and senators from Kentucky. (Source: NPR, radio earlier this month where a representative of Canada said exactly this. I wish I could find the audio.) This is the very definition of other sovereign countries interfering with American politics. I would bet that the tariffs being placed here locally are designed to have similar effects.

tacomonstrous 8y ago
>you buy into the media push that Trump is a petulant, reactive child who does not listen to advisers? You don't have to buy anything. Just listen to the man himself and it's crystal clear.
dnomad 8y ago
Your argument is that there's some super-intelligent strategy at work here but it must be kept secret in order for it to work. This is literally baseless nonsense. America has a single goal that is beyond transparent: prevent the rise of Chinese apex-technological manufacturers. Everything was okay when China was making shoes and Christmas lights but now they're fabricating increasingly sophisticated computer chips [0], producing more electronic cars than the rest of the world combined [1], and kicking out all sorts of fancy 5G telecom equipment that does more but costs significantly less than what Western manufactuers can offer [2]. The "strategy" here is too little and far too late. Trump's only victory here will be, like so many other victories, purely symbolic: his base might get riled up and support him for taking on the "Chinese" who "stole" all their jobs... but China's competitiveness here won't be affected. Cutting off Americans from China's competitive electronics will just drive up prices in America and make American companies less competitive on the global market. The rest of the world (the other 7.3 billion on the planet) absolutely love China's cheap but capable electronic products. The only thing at this point that will actually stop China's growth here is literal bombs and tanks. [0] http://mckinseychina.com/whats-next-for-chip-makers-in-china/ http://mckinseychina.com/whats-next-for-chip-makers-in-china... [1] https://nextshark.com/china-now-makes-electric-cars-every-country-combined/ https://nextshark.com/china-now-makes-electric-cars-every-co... [2] https://telecom.economictimes.indiatimes.com/news/mobile-network-equipment-makers-eye-5g-windfall/63136118 https://telecom.economictimes.indiatimes.com/news/mobile-net...