• BeardedGingerWonder@feddit.uk
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    12 hours ago

    The question comes down to whether a phone with a chip in it is subject to the tariff or just raw chips being imported. No one is putting a US chip in it, because US chips don’t exist. The foundries to make them don’t exist.

    If the assembled phone is subject to a “phone” or “general” tariff at 30% and not the 100% chip tariff then it incentivises manufacturing in china vs the US is what I think the OP is saying.

    • artyom@piefed.social
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      11 hours ago

      Why wouldn’t the tariff apply to chips already in devices? That’s the way its always been discussed.

      • Wispy2891@lemmy.world
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        7 hours ago

        tariffs are over the final product, not the individual components inside that product.

        For example Ford was making a cargo van in turkey, but thanks to the chicken tax that they themselves lobbied for, a cargo van made in turkey would have a 25% tariff. Solution: make passenger vans in turkey, import them with 0% tariff, then pay an american to remove and send the passenger seats to the landfill and get a cargo van

      • overload@sopuli.xyz
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        6 hours ago

        Because tariffs are crude pieces of legislation. The US can’t make their own phones anyway, even with 1000% china tariffs, for years. You can’t just click your fingers and have manufacturing at that scale and quality exist.

        • artyom@piefed.social
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          5 hours ago

          Whether they can or do make their own chips is irrelevant to who is impacted by tariffs.

      • trashcan@sh.itjust.works
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        8 hours ago

        Perhaps somehow we still believe he wouldn’t fuck over Americans that much.

        There’s chips in everything and they simply won’t be made domestically any time soon.