Forums - Politics Discussion - Import Tarifs (25+%) soon (Aug 23rd) to hit PC & PC parts!

irstupid said:
Spindel said:

Except that china manufactures all the parts in the TV. The TV made in USA has to import parts from china.

 

...but meh who cares I don’t live in USA anyway.

 

Mods please keep politics out of this forum!

The point is that if it costs too much to manufacture the parts in China, then US companies will move their factories back into the US.

So the products will once again be made on US soil, thus creating more jobs. Even though it costs more to make in the US, the products are still competitive because of the large trade tax on Chinese goods.

I'm not saying us consumers win, just pointing out the philosophy behind it.

uhh.. certainly not in the short term and you said before you expect this situation to be short term



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Well then move the production of your goods to any country that isn't China, easy solution. This isn't good though with the potential announcement and future launch of the GTX11 series later this month.



haxxiy said:
irstupid said:

The point is that if it costs too much to manufacture the parts in China, then US companies will move their factories back into the US.

So the products will once again be made on US soil, thus creating more jobs. Even though it costs more to make in the US, the products are still competitive because of the large trade tax on Chinese goods.

I'm not saying us consumers win, just pointing out the philosophy behind it.

Why not to India or Vietnam then, assuming they would move (which they won't, since it's consumers anyway who will take the toll of increasing taxes).

What boggles my mind the most is how the Trump fanbase is swallowing some of the cheapest left-wing policies anyone can think of without blinking an eye. Or not, since, uh, you know.

 

Lafiel said:
irstupid said:

The point is that if it costs too much to manufacture the parts in China, then US companies will move their factories back into the US.

So the products will once again be made on US soil, thus creating more jobs. Even though it costs more to make in the US, the products are still competitive because of the large trade tax on Chinese goods.

I'm not saying us consumers win, just pointing out the philosophy behind it.

uhh.. certainly not in the short term and you said before you expect this situation to be short term

You two do realize I'm basically just quoting what anyone can find in an economics book in college.

I'm not defending or arguing this will work or not, just laying out the philosophy behind what a trade tax can do.

It's also just common sense. Same thing with Corporate tax rates. The lower the tax rate, the more enticing it is for a corporation to move there so they pay less taxes.

Why did all these US companies go to China, or India, or whever for the big famous word "OUTSOURCING" Because they can produce their product for cheaper and make a larger profit and/or compete better. Obviously if one were to tax the products leaving there high enough, it would negate the benefit.

But as will the corporate taxes I listed above, US is not the next cheapest place behind china.



TheBird said:
Well then move the production of your goods to any country that isn't China, easy solution. This isn't good though with the potential announcement and future launch of the GTX11 series later this month.

I doubt that is an "easy solution" as most PC components (or game consoles) have hundreds of parts of which most are probably made in china - these will be subject to the tarifs even if the completed component is assembled elsewhere. To move the US-bound production of all parts outside of China is very likely not feasible, additionally (to moving assembly) sourcing as much as possible from outside of China (if there are adequate alternatives) could atleast mitigate the tarif-impact of the completed component a bit.



Hahaha, so this is why most of the elite on the video games business are trying to go to alternate route using "Streaming Device ". I can see why Ubisoft and Microsoft are trying to go this route. gaming in the future will be super expensive especially with this political problem , i can see we will see a streaming device getting more and more popular on some country with high bandwidth.



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vivster said:
Finally someone who runs the state like a business.

Considering how many businesses that Trump has bankrupted over the past few decades, I really hope not. 



axumblade said:
vivster said:
Finally someone who runs the state like a business.

Considering how many businesses that Trump has bankrupted over the past few decades, I really hope not. 

This



I'm thinking Trump might've flown too close to the sun with this one. This is an immediately noticeable inconvenience that your average consumer is gonna hate. He's just lost the vote of many people who buy electronics.



This makes electronic companies very happy. Now they can ask the same for PC parts in Europe and the US. While the consumers pay for the extra tax. Each pc part in Europe will have a way higher price and the companies will have a much better profit ratio. So the real winner isn't US it are tech companies which have the perfect excuse to massively overprice stuff in the EU. 



Please excuse my (probally) poor grammar

Qwark said:

This makes electronic companies very happy. Now they can ask the same for PC parts in Europe and the US. While the consumers pay for the extra tax. Each pc part in Europe will have a way higher price and the companies will have a much better profit ratio. So the real winner isn't US it are tech companies which have the perfect excuse to massively overprice stuff in the EU. 

Is it really that much of a win for tech companies when higher prices just mean consumers won't buy as many electronics, though?