President Donald Trump says he's imposing a 100% tariff on computer chips— a move that will likely raise the cost of electronics, autos, household appliances and other essential goods.
there’s a youtube video from “smarter every day” that showed his attempt to make something 100% in the USA.
The item was just a barbecue scrubber, with just a few components.
He needed a simple screw… NOBODY made that in the US…
He needed a simple plastic knob… NOBODY made that in the US (he bought 10k “american” knobs but once arrived there was a MADE IN COSTA RICA sign)
He wanted to make injection molds in the US… NOBODY did that, he had to find some retired expert to help him.
So, if you assemble stuff in US, you still need to import EVERYTHING, paying the same tariff and with more expensive labor. Tariffs need to be carefully considered and target a specific item in order to have some positive effect
there’s a youtube video from “smarter every day” that showed his attempt to make something 100% in the USA.
The item was just a barbecue scrubber, with just a few components.
He needed a simple screw… NOBODY made that in the US…
He needed a simple plastic knob… NOBODY made that in the US (he bought 10k “american” knobs but once arrived there was a MADE IN COSTA RICA sign)
He wanted to make injection molds in the US… NOBODY did that, he had to find some retired expert to help him.
So, if you assemble stuff in US, you still need to import EVERYTHING, paying the same tariff and with more expensive labor. Tariffs need to be carefully considered and target a specific item in order to have some positive effect
I don’t understand what any of that has to do with this discussion.
Serious or trolling?
You said:
Then I explained to you why it works like this:
Manufactured in the USA = tariffs and expensive labor.
Manufactured outside the USA = tariffs and cheap labor.
It’s really that simple.
Tariffs on everything is an incentive on manufacturing outside the USA as the supply chain is missing and all the parts need to be imported too.
The story would be different if those were targeted tariffs on specific products. In that case it would work in the opposite way