SiTime

bobroo said:

I'm certain it works out like this:

Trump recinds his 145% tax on Americans for buying Chinese goods because too many Americans don't like paying 145% more for a shopping cart of goods from Costco, Target, Walmart, or Amazon.

President Xi doesn't budge and China doesn't buy as many American made goods ever again.


China will win the battle and show the world that there is a new world powerhouse in control.  

China’s economy isn’t exactly in a position of strength right now. Well… no country’s economy will be strong if this continues. But even before all of this, China’s economy wasn’t doing so well. Various structural issues and whatnot.

If Trump removed the American tariffs, Xi would remove the Chinese tariffs as well. Xi doesn’t want to more than double the prices of American goods for Chinese consumers (if he doesn’t have to in order to retaliate against Trump tariffs). Especially since many of the American goods that Chinese consumers buy are food products.

This tariff war isn’t good for any country (America included, China included). The world is just waiting for one man to realize that. 

aslam said:

The top of the article says that prices would rise in the US and elsewhere. I’m struggling with rationalizing the “and elsewhere” part of it. I see how prices would have to rise for American consumers because tariffs would apply on products produced in China, but why would prices rise for those outside of the US? If I’m not mistaken, most of Apple’s product like iPads, Macs and iPhones are assembled in China with parts manufactured entirely outside the US. So that product, when sold to a Canadian or European, should cost the same as before, should it not? Canada hasn’t levied new tariffs on Chinese-made products or on parts from India, Taiwan, etc., so shouldn’t the price remain the same for Apple to produce the product in China and then sell it in Canada or Europe? Maybe I’m missing something or some element of the supply chain. Can someone elaborate on this for me?

Despite the “America doesn’t manufacture things anymore” narrative said by some people, America actually does make things in the United States. There are iPhone components that are made by American companies and manufactured in America (as well by non-American companies with manufacturing in America).

Gorilla Glass, as a notable example, is a product of the American company Corning and is manufactured in Kentucky, USA (with other manufacturing facilities throughout the world). If countries slap retaliatory tariffs on made in the USA products (without any exceptions), it could increase the cost of Gorilla Glass manufactured in Kentucky (and sold and shipped to companies in non-American countries).

Additionally, there are memory component companies with manufacturing facilities in America. There are radio frequency chip component companies with manufacturing facilities in America. Etcetera and so on.

Some people incorrectly think that “global supply chain” is code for “Asia-only supply chain”. But It’s truly a global supply chain (and that includes the United States).