Does anybody know if the tariffs apply to goods that pass through the US? Currently, all the parts we buy from China arrive at a US airport before coming to its final destination.
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I actually heard a similar question regarding soybeans. For tariffs, generally intermediate stops don't matter. However, if your parts are being sent to a distributor in the US and sold back out of the country, then the distributor would charge you more to cover the tariff.
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thanks for the info :)
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Also, have you read "Eat the Rich" by P.J.O'Rourke? There's a great explanation of "Opportunity Cost" in one chapter, using an analogy involving John Grisham and Courtney Love:https://books.google.com.au/books?id=Zrm7CPTUfScC&pg=PT92#v=onepage&q&f=false …
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(It's been so long since I read it, I'd somehow retconned the example to Britney Spears and Stephen Hawking. Which would have been funnier a year ago.)
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Very tendentious, IMO. The point is that those parts could as easily be manufactured here(US). They might be more expensive, but they would be competing with more expensive foreign parts (due to tariffs). 1/3
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Right now, the entire parts manufacturing industry is rapidly being automated. Which will eliminate most or all of the downside from higher labor costs here. The effect of these tariffs will include incenting investment in highly automated parts factories in the US,... 2/3
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...With better returns than if they didn't exist. It will also allow US companies to retain IP and trade secrets rather than risking them in foreign factories. I'm not saying it's guaranteed to work, but it's not nearly as foolish as you suggest. 3/3
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Well written - it would be nice if these kinds of things could have been considered before tariffs were enacted.
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Maybe it’s a plan to fight poverty in the world? China gets out of poverty thanks to manufacturing, but since they pay a lot of the infrastructure in Africa, they also pull the continent out of poverty.
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