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.
That’s generally how tariffs work. A tariff on grain is not a tariff on bread. A tariff on steel is not a tariff on knives. A tariff on cotton is not a tariff on clothing.
It can be, of course. A tariff can be on steel and items made with steel. But that’s not usually the case, and it’s usually called out as such. Of course, Trump is not what you’d call the most precise communicator in the world, but all we can do is work with what he says.
That’s generally how tariffs work. A tariff on grain is not a tariff on bread. A tariff on steel is not a tariff on knives. A tariff on cotton is not a tariff on clothing.
It can be, of course. A tariff can be on steel and items made with steel. But that’s not usually the case, and it’s usually called out as such. Of course, Trump is not what you’d call the most precise communicator in the world, but all we can do is work with what he says.
That’s not how tariffs work. You can’t just circumvent them by packaging them differently.
Packaging, no. But manufacturing it into something else, yes.
Do you think a tariff on copper would apply to an iPhone? Or a tariff on oil?
…of course?
Do your iPhones usually take oil? 🤔
What do you think plastic is made from?