Summary
Trump plans to impose tariffs of up to 100% on semiconductors manufactured in Taiwan, aiming to push U.S. tech companies like Apple, Nvidia, and AMD to produce chips domestically.
The tariffs target Taiwan’s TSMC, a key supplier, despite its partial U.S. production in Arizona.
Trump criticized Biden’s CHIPS Act for funding companies like Intel and proposed tariffs as an alternative incentive.
Experts warn the move could raise prices for electronics as most TSMC chips are assembled in Asia before export to the U.S.
Let’s explain tariffs so that even a baby like trump could understand.
If an item is sold for $1 and you put 100% tariff on it, it now costs $2 for a consumer in the US to buy. The government doesn’t get to take the $1 that the company is selling it for, they still make their $1 regardless of the tariff. All this does is force the US buyer to pay more.
I guess he could understand it if this is designed to funnel more money to the government but it’s gonna start impacting his tech bro handlers.
It makes a lot of sense if the government money is now his own money
I just want to add one thing, the people in the country that issue the tariff also have no incentive to ignore the new price floor that the tariff represents. Instead, they will set their price to just below the new tariff floor and pocket what ever difference there is
Yes, but the goal of a tarrif is to create incentives for onshore investment and development to come it at a $1.50 price point. We, in general, have moved past that by using subsidies to not create issues for the economy in the short term.