this post was submitted on 12 Apr 2025
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I'm not so sure about that. With tarrifs of over 100%, manufacturers can add over a 100% to the cost of production and still come out ahead... Alternatively they could move production, but that only makes sense to do if it's cheaper than adding just enough electronics to make the items exempt from tarrifs
"with tariffs...manufacturers can add...come out ahead" - do you imply manufacturers are getting anything? This is not them who rsises the prices, they won't see the money
if they reduce the tariff on their product and charge the same post tariff price they could make more profit even with higher manufacturing costs.
They? They like "manufacturers"? They can't reduce tariffs, the tariffs exist against them, it's only the orange who introduced them can reduce them.
That's more or less my point. They won't come out ahead but at least they won't have to raise the prices as much so they'll be more completive compared to manufacturers that don't include electronics
That won't work, because building a new factory takes 2-5 years and if the tariffs drop at any point then you're stuck with a product way more expensive that nobody will buy.