Now this loophole will make sure everything is a cell phone or computer. Every toy will suddenly have gps a gig of ram and a touch screen. Micromachines are going to be lit.
I’m not so sure about that. With tarrifs of over 100%, manufacturers can add over a 100% to the cost of production and still come out ahead…
Alternatively they could move production, but that only makes sense to do if it’s cheaper than adding just enough electronics to make the items exempt from tarrifs
“with tariffs…manufacturers can add…come out ahead” - do you imply manufacturers are getting anything? This is not them who rsises the prices, they won’t see the money
That’s more or less my point.
They won’t come out ahead but at least they won’t have to raise the prices as much so they’ll be more completive compared to manufacturers that don’t include electronics
That won’t work, because building a new factory takes 2-5 years and if the tariffs drop at any point then you’re stuck with a product way more expensive that nobody will buy.
Now this loophole will make sure everything is a cell phone or computer. Every toy will suddenly have gps a gig of ram and a touch screen. Micromachines are going to be lit.
Even potato chips will identify as micro chips.
ZeroCool flavored Doritos.
No. Even a large tariff on a 3$ piece of plastic that retails for 20-30 won’t be worth adding anything.
I’m not so sure about that. With tarrifs of over 100%, manufacturers can add over a 100% to the cost of production and still come out ahead… Alternatively they could move production, but that only makes sense to do if it’s cheaper than adding just enough electronics to make the items exempt from tarrifs
“with tariffs…manufacturers can add…come out ahead” - do you imply manufacturers are getting anything? This is not them who rsises the prices, they won’t see the money
if they reduce the tariff on their product and charge the same post tariff price they could make more profit even with higher manufacturing costs.
That’s more or less my point. They won’t come out ahead but at least they won’t have to raise the prices as much so they’ll be more completive compared to manufacturers that don’t include electronics
That won’t work, because building a new factory takes 2-5 years and if the tariffs drop at any point then you’re stuck with a product way more expensive that nobody will buy.
They? They like “manufacturers”? They can’t reduce tariffs, the tariffs exist against them, it’s only the orange who introduced them can reduce them.