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It won't matter if US implement 100% tariff on China, what's going to happen next is that they're still going to create 800 parts in China, which gets shipped t
by Aperocky 7y ago
It won't matter if US implement 100% tariff on China, what's going to happen next is that they're still going to create 800 parts in China, which gets shipped to Vietnam and assembled there and exported as a product of Vietnam. Vietnam (or whatever other country) would benefit at the cost of China/United States and more carbon emission due to shipping.
The enormous electronic manufacturing in China isn't moving anywhere, there's just nowhere that has the scale, infrastructure,and the know how to produce cheap electronic products. If you think this is still all just people on the assembly line, you've got a very historical understanding of this process.
- NohatCoder 7y agoEvery country with tariffs have an army of bean counters whose job it is to deal with that kind of loopholes. Sure something will slip though, but anything big will get caught.
- Aperocky 7y agoWhat do you mean? The stuff is made in Vietnam. Just like all of apple which source their chips to Intel and then assembled in China still count as made in China as a whole in the tariff book. This practice is as legal as it gets and cheaper than paying that 25% extra.
- NohatCoder 7y agoYou may argue that it is made in Vietnam, but if whoever has to tax it don't agree, your argument counts for nothing. The US taxation officials don't have to come up with a non-contestable argument for why it is a Chinese product, they just need an argument that their own courts will accept, that generally isn't a particularly high standard in a situation where the USA and China are locked in a trade war.
- Aperocky 7y agoYes, the computer is made of 2750 parts, these parts come from 21 countries and some of them made several loops through different country. The final assembly place is $INSERT_COUNTRY. Now tell me, if the $INSERT_COUNTRY is Vietnam, how will the US government justify say this is not? because right now that $INSERT_COUNTRY is China and they're levying tax on that basis. You seem to grossly underestimate how interconnected the world is today.