President Donald Trump says he's imposing a 100% tariff on computer chips— a move that raises the specter of higher prices for electronics, autos, household appliances and other essential goods that depend on the processors.
The real problem seems to be that none of the news articles try to dig into what Trump’s vague and ambiguous wording actually means. They just report his nonsense verbatim. Does “building in the USA” mean building chips or building products containing chips?
The tariffs only apply to the imported products. That’s how tariffs work. If you import components into a US product then you only pay the tariff on those components, not the entire product.
It’ll probably be 100% tariff for the chip, and whatever the rate is for that country on the rest of the product. That’s assuming they go into that much detail, because if they don’t, it would be easy to dodge.
Right, but a microchip is quite a different beast than raw steel. Nobody is going to buy a muffler to melt down to produce something else, but they might buy a PC to scavenge for parts. It’s relatively easy to pull a chip off a board, whereas reforming steel is a lot more intensive.
Sounds like you can save 85% by putting some googly eyes on the chip and calling it a finished product. It’s Chippy, the pointy pet that fits in your pocket.
Why wouldn’t I be serious? If they’re manufactured outside the US then they’re obviously not manufactured in the US?
I believe they’re referring to products made in the USA that contain chips.
As in importing chips would be 100% but importing a product that contains chips would be 15%?
The real problem seems to be that none of the news articles try to dig into what Trump’s vague and ambiguous wording actually means. They just report his nonsense verbatim. Does “building in the USA” mean building chips or building products containing chips?
The tariffs only apply to the imported products. That’s how tariffs work. If you import components into a US product then you only pay the tariff on those components, not the entire product.
Right.
Isn’t that in agreement with OP? Any products made in USA that contain chips will cost more to make due to the 100% tariff on the chips.
No, OP said it only applied to US products. It’s applied to all imported products. That’s what a tariff is.
So any product containing chips will have a 100% tariff applied?
Edit: product imported to the USA
It’ll probably be 100% tariff for the chip, and whatever the rate is for that country on the rest of the product. That’s assuming they go into that much detail, because if they don’t, it would be easy to dodge.
I import exhaust parts made from steel. They are tarriffed as exhaust parts. Raw steel has its own import HTS code.
Right, but a microchip is quite a different beast than raw steel. Nobody is going to buy a muffler to melt down to produce something else, but they might buy a PC to scavenge for parts. It’s relatively easy to pull a chip off a board, whereas reforming steel is a lot more intensive.
Yes, and since those products are only imported, it won’t affect US products, like I said.
Sounds like you can save 85% by putting some googly eyes on the chip and calling it a finished product. It’s Chippy, the pointy pet that fits in your pocket.