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[StereoVsn]

The salary gap between these countries and the US is way higher than the tariff. Net-net it will simply increase the prices of the goods for the US consumer - question is whether they can circumvent some of the tariffs by adding a screw or two in the US and work with internal transfer prices between the various legal entities in their corporate structure (to minimize the tariff impact).

The aim of the tariffs is not to move manfacturing around - that is just a PR ploy - it is to change the tax system structure.

I think forcing more manufacturing to move out of China and to bring “some” manufacturing back to US is part of it.

But yeah, “external revenue service” and all is main goal probably. We will see how voters will take that if inflation spikes.

 

[FoxMcChief]

 

[Reckheim]

Only if people pay the higher prices. for the most part things will stay the same and instead of 100% profit the companies make 90%

you can't actually believe this.

 

[Heimdall_Xtreme]

Acer CEO says its PC prices to increase by 10 percent in response to Trump tariffs

Depending on the PC, prices could go up by as little as $20 or as much as $380.

arstechnica.com

Buy your hardware sooner than later, as if PC gaming wasn't getting bad enough already. There is also a note from Newegg about the same, lots of AIBs make their GPUs in China, if not all (https://www.pcmag.com/news/newegg-confirms-tariffs-are-to-blame-for-rtx-5080-5090-gpu-price-hikes).

Pure pretext, they want to get more money with that excuse... I wouldn't buy from them.

 

[A.Romero]

Only if people pay the higher prices. for the most part things will stay the same and instead of 100% profit the companies make 90%

Sure because items have 100% profit on their price. Costs are 0, right?

Usually profit is anywhere between 5 to 20% of the final price of the item. The tariffs apply to the final price of the item. So if the item has a 20% profit, if they absorb the tariffs they would only make 10% (so 50% of the profit). However, if they make 5% and they don't increase the price, they would make -5% so they would lose money.

If profit is not enough then there is little incentive to not invest somewhere else so they prefer to increase the price.

I know, it's kind of hard to grasp all of this. I guess that's why the administration decided to forget about the fundamentals of capitalism.

 

[Fabieter]

Pure pretext, they want to get more money with that excuse... I wouldn't buy from them.

You will see price increasing across the board.

No one wins this trade war, everyone would profits from fair trade and globalisation.

 

[rodrigolfp]

The America that has created this situation.

So part of north America.

 

[Heimdall_Xtreme]

You will see price increasing across the board.

No one wins this trade war, everyone would profits from fair trade and globalisation.

It's like Coca Cola. The people of Mexico were among the first places in consumption... Now that Trump ruined it, the people of Mexico stopped consuming it and Coca Cola even gave away the product, a crisis hit them.

 

[iHaunter]

Winning! Am I right? Nice work those who wanted this.

 

[fallingdove]

Do you realise what sort of time frames you'd realistically be looking at?



The America that has created this situation.

Ehh. Production may not move to America right away (or ever) but companies have already started increased production in Vietnam, Malaysia, and Indonesia to avoid passing costs onto the consumer. This also helps to weaken the Chinese position.

Tech will definitely lag in this regard because there are fewer skilled labor forces and production facilities outside of China but this move is honestly a net positive for consumers in the long run. As part of the production shift, it may also force companies to rethink partnerships to prioritize decent working conditions for the assembly line.

 

[Alebrije]

So Dell is producing PCs aoutside U.S. and due to tariffs there will be 10% increase.

Prople say move to U.S. the factory and that 10% tariff wont exists.

Dell closes factory in China or Mexico, open it in U.S.

If all the compnents to produce a PC in the U.S. are made in U.S. tarriff wont be also a problem.

Dell produces new made in U.S. laptop but is 15-20% more expensive...or even more.

Yea is a simple way to show the case but this is how it will work. No matter if Trump lows US regulations this happens because block chains are hard to implement in the short or middle term, dont think PC manufacturing use a lot of human labor but Dell will need hundreds of people to operate the factory, energy costs will.also.be more expensive, etc.

 

[Atrus]

It’s expected that there will be increases in costs across the board due to tariffs and the results of them.

Partly as a result of increasing prices on US consumers who pay the tariffs and partly due to other countries and businesses reorganizing their supply chains to avoid selling cheaper goods (like Energy) to the US, which produces those “evil” US trade deficits.

 

[Bumblebeetuna]

Unless they manufacture here, correct?

And how much more expensive do you think the products would be then?

No one is going to massively shift their company to America to appease a guy who will be gone in four years max.

 

[LimanimaPT]

Unless they manufacture here, correct?

Why would they? Price would increase 25% due to labour costs.