7 ms·

Tariffs Are Proving 'Big Headache' for Tech Giants, Says Foxconn

48 points by m463 2y ago

Trasmatta 2y ago
Maybe tech giants shouldn't have been so quick to trip over themselves to kiss the ring
- wenwolf 2y ago
  I like even less how they use slander lawsuit settlements to achieve bribes. I imagine it would be hard for anyone else who would have to counter evidence that they raped their ex-wife to sue people because more recent sex crimes were not rapes. I can't imagine someone as rich as Bezos doesn't have expensive advisors who have told him the patterns suggest that his best move for his businesses is to at least fake that he can get in a testosterone war with Trump through his paper.. So the likely explanations for why he hasn't that I can think of are not kind.
skybrian 2y ago
Maybe the tariff should be a separate line item, like sales tax?
- wenwolf 2y ago
  Sounds like airline bills.. I don't really see how that has worked out for them.
  - daveguy 2y ago
    At least you specifically see what each charge is costing you.
    - NullPrefix 2y ago
      Only at the last second of the purchase, when you're already mentally commited to buy at a lower previously advertised price
- mastax 2y ago
  That’s how it is at DigiKey and some other B2B focused distributors.
sourtrident 2y ago
It's wild - tariffs meant to shield U.S. interests end up giving Apple and Foxconn headaches, shifting their entire strategy. Reminds me of closing one door only to notice everyone's sneaking in through the window. Protectionism might feel good, but tech always finds another route around.
- brookst 2y ago
  I’m skeptical the tariffs were mean to shield US interests rather than just being intended to do exactly what they’re achieving: isolating the US by driving investment and allies away, while contributing to a recession where oligarchs can further consolidate power and wealth. If you look at them as an attack on the US, everything makes a lot more sense.
  - deleted 2y ago
    [deleted]
  - __MatrixMan__ 2y ago
    Agreed, it's exactly what I'd do if I wanted the US to withdraw from global relevance.
  - 9283409232 2y ago
    This is the correct way of thinking about it. The tariffs aren't meant to drive economic growth, they are meant to tank the economy and drive a wedge between the US and allies. The ultimate goal is to start a recession and an extra bonus goal would be to get US army bases in Europe shut down. That would make Putin extra happy.
  - VoodooJuJu 2y ago
    [dead]
  - tempodox 2y ago
    Yep, when Trump is through America will lie in ruins.
  - oceanplexian 2y ago
harmmonica 2y ago
https://archive.is/rNixb https://archive.is/rNixb
skylurk 2y ago
Offshoring to stable countries is looking really smart now.
- BLKNSLVR 2y ago
  Exactly. The US has revealed itself to be prone to wild swings of policy, which will not be a lesson soon forgotten by prior trade allies. Even if sanity and democracy are brought back by a future adminstration, the US public have proven they can't be trusted not to vote in another clone of their current dictator. DJT Jnr and Barron will probably have a shot at the title in the not too distant future to maintain some kind of North Korean-like dynasty. There's enough of an undercurrent of overconfident, no-consequence, chest thumping "individuality and independence" in the US that, unless complete ruination occurs this time around, they'll vote for having another bash at complete ruination. Good trade relations is what keeps the trust and respect for the laws of the US in place in other developed countries. Copyright for example. If the US isn't a reliable trade partner then their power to influence copyright laws around the world would rapidly diminish, which Disney wouldn't be happy with. (I'm sure there are other examples of this, but international US copyright Law is one I'm vaguely familiar with. Use of the US Dollar for trade is another possible avenue for decline of US global influence). Yes, the US could be self sufficient to keep it's entire population alive and well, but not with the lifestyles to which many of them have become accustomed.
  - whatshisface 2y ago
    The US doesn't need to prove to the world that a bad president will never be elected again, which as you say is probably impossible and definitely false. What the US can do to rejoin the world in something akin to its former capacity is to walk back the extreme levels of authority granted to an individual who changes every four years (why is the executive able to change tariff levels every day?) in a way that relatively elevates rule of law and deliberative, compromising decision making.
    - unavoidable 2y ago
      As an outsider, it certainly seems like the US is entirely incapable of doing that in the foreseeable future.
standardUser 2y ago
Everyone hates tariffs because everyone hates taxes. If a government uses protectionism for a specific policy goal, like developing a domestic auto industry, that can be very effective and we've seen that work lots of times in lots of countries. The US may have recently managed to achieve this with microchip production. But when tariffs are applied broadly we all pay more in taxes. And it's worse than a more familiar increase in sales or income tax because it can absolutely wreck supply chains.
- unavoidable 2y ago
  If tariffs work at all (which is doubtful), they're supposed to be part of an overarching plan with a long-term strategy in coordination with industry so that they can actually invest in creating new manufacturing. It certainly isn't going to work when tariffs are going on-off-on-off-25%-200%-10%-off-on-sometimes-off-on again. How in the world is _anyone_, American or otherwise, supposed to plan around this?
  - Terr_ 2y ago
    Also, they shouldn't be part of 4-front trade war against the country's biggest partners comprising >50% of all trade. "Do something or we'll trade with somebody else" is not a credible threat if they know you've already pissed off everybody else.
    - oceanplexian 2y ago
      The US is the world's largest domestic economy. Trade with all nations around the world is 24% of the USA's GDP. You could shut it all down and the country would probably enter a mild recession while the rest of the world would face complete economic collapse. For example, 67% of Canada's GDP is reliant on the United States in some way. The US has an insane amount of leverage. Leaders in Canada, Europe, etc talk a big game but then ultimately talk to an economist and realize they have to come to the table. That's why these leaders keep announcing things and then walking them back.
      - 2y ago
deleted 2y ago
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deleted 2y ago
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48 points by m463 2y ago

Trasmatta 2y ago

Maybe tech giants shouldn't have been so quick to trip over themselves to kiss the ring

wenwolf 2y ago
I like even less how they use slander lawsuit settlements to achieve bribes. I imagine it would be hard for anyone else who would have to counter evidence that they raped their ex-wife to sue people because more recent sex crimes were not rapes. I can't imagine someone as rich as Bezos doesn't have expensive advisors who have told him the patterns suggest that his best move for his businesses is to at least fake that he can get in a testosterone war with Trump through his paper.. So the likely explanations for why he hasn't that I can think of are not kind.

skybrian 2y ago

Maybe the tariff should be a separate line item, like sales tax?

wenwolf 2y ago
Sounds like airline bills.. I don't really see how that has worked out for them.
- daveguy 2y ago
  At least you specifically see what each charge is costing you.
  - NullPrefix 2y ago
    Only at the last second of the purchase, when you're already mentally commited to buy at a lower previously advertised price
mastax 2y ago
That’s how it is at DigiKey and some other B2B focused distributors.

sourtrident 2y ago

It's wild - tariffs meant to shield U.S. interests end up giving Apple and Foxconn headaches, shifting their entire strategy. Reminds me of closing one door only to notice everyone's sneaking in through the window. Protectionism might feel good, but tech always finds another route around.

brookst 2y ago
I’m skeptical the tariffs were mean to shield US interests rather than just being intended to do exactly what they’re achieving: isolating the US by driving investment and allies away, while contributing to a recession where oligarchs can further consolidate power and wealth. If you look at them as an attack on the US, everything makes a lot more sense.
- deleted 2y ago
  [deleted]
- __MatrixMan__ 2y ago
  Agreed, it's exactly what I'd do if I wanted the US to withdraw from global relevance.
- 9283409232 2y ago
  This is the correct way of thinking about it. The tariffs aren't meant to drive economic growth, they are meant to tank the economy and drive a wedge between the US and allies. The ultimate goal is to start a recession and an extra bonus goal would be to get US army bases in Europe shut down. That would make Putin extra happy.
- VoodooJuJu 2y ago
  [dead]
- tempodox 2y ago
  Yep, when Trump is through America will lie in ruins.
- oceanplexian 2y ago

harmmonica 2y ago

https://archive.is/rNixb https://archive.is/rNixb

skylurk 2y ago

Offshoring to stable countries is looking really smart now.

BLKNSLVR 2y ago
Exactly. The US has revealed itself to be prone to wild swings of policy, which will not be a lesson soon forgotten by prior trade allies. Even if sanity and democracy are brought back by a future adminstration, the US public have proven they can't be trusted not to vote in another clone of their current dictator. DJT Jnr and Barron will probably have a shot at the title in the not too distant future to maintain some kind of North Korean-like dynasty. There's enough of an undercurrent of overconfident, no-consequence, chest thumping "individuality and independence" in the US that, unless complete ruination occurs this time around, they'll vote for having another bash at complete ruination. Good trade relations is what keeps the trust and respect for the laws of the US in place in other developed countries. Copyright for example. If the US isn't a reliable trade partner then their power to influence copyright laws around the world would rapidly diminish, which Disney wouldn't be happy with. (I'm sure there are other examples of this, but international US copyright Law is one I'm vaguely familiar with. Use of the US Dollar for trade is another possible avenue for decline of US global influence). Yes, the US could be self sufficient to keep it's entire population alive and well, but not with the lifestyles to which many of them have become accustomed.
- whatshisface 2y ago
  The US doesn't need to prove to the world that a bad president will never be elected again, which as you say is probably impossible and definitely false. What the US can do to rejoin the world in something akin to its former capacity is to walk back the extreme levels of authority granted to an individual who changes every four years (why is the executive able to change tariff levels every day?) in a way that relatively elevates rule of law and deliberative, compromising decision making.
  - unavoidable 2y ago
    As an outsider, it certainly seems like the US is entirely incapable of doing that in the foreseeable future.

standardUser 2y ago

Everyone hates tariffs because everyone hates taxes. If a government uses protectionism for a specific policy goal, like developing a domestic auto industry, that can be very effective and we've seen that work lots of times in lots of countries. The US may have recently managed to achieve this with microchip production. But when tariffs are applied broadly we all pay more in taxes. And it's worse than a more familiar increase in sales or income tax because it can absolutely wreck supply chains.

unavoidable 2y ago
If tariffs work at all (which is doubtful), they're supposed to be part of an overarching plan with a long-term strategy in coordination with industry so that they can actually invest in creating new manufacturing. It certainly isn't going to work when tariffs are going on-off-on-off-25%-200%-10%-off-on-sometimes-off-on again. How in the world is _anyone_, American or otherwise, supposed to plan around this?
- Terr_ 2y ago
  Also, they shouldn't be part of 4-front trade war against the country's biggest partners comprising >50% of all trade. "Do something or we'll trade with somebody else" is not a credible threat if they know you've already pissed off everybody else.
  - oceanplexian 2y ago
    The US is the world's largest domestic economy. Trade with all nations around the world is 24% of the USA's GDP. You could shut it all down and the country would probably enter a mild recession while the rest of the world would face complete economic collapse. For example, 67% of Canada's GDP is reliant on the United States in some way. The US has an insane amount of leverage. Leaders in Canada, Europe, etc talk a big game but then ultimately talk to an economist and realize they have to come to the table. That's why these leaders keep announcing things and then walking them back.
    - 2y ago

deleted 2y ago

[deleted]

deleted 2y ago

[deleted]