PC components to get a little bit more pricer due to Import Tariffs in America

[ItsMitch]

no this thread won't be about potus and his feud with china thx mods  aka, NO DAMN POLITICS IN MY THREADS

 

S: Tech Power Up

Due to the ongoing feud with China, POTUS has fired off a barrage of import tariffs against China which is now going to be harming the PC Hardware which comes directly from China, specifically the import tariffs will be centered around quote. 

Quote

 "electronic integrated circuits: processors and controllers," "electronic integrated circuits: memories," "electronic integrated circuits: amplifiers," "electronic integrated circuits: other,"

 

It's also worth noting that not all of these products come from China, they're sometimes from Taiwan, SK, JP and many other SEA areas but of course, prices will definitely rise for some retailers.  These products will be subject to a 25% price rise due to an import tariff. However that does NOT include retailers costs and other costs. 

 

The import tariffs will be put in place on the 23rd of August 2018.

Full list of import tariffs can be found here.

I send my deepest of condolences to my American friends who may be impacted by this horrific tragedy.

[pas008]

isnt this going to affect phones/tablets/stereo/tv/etc also?

 

I can see an couple new companies start up in south korea or other asian countries to have shiipped there then to us lol

[ItsMitch]

Just now, VegetableStu said:

yeah this only happened because one guy (or his administration) thinks-- oh god this has broken the rules already hasn't it ,_,

[orbitalbuzzsaw]

A large portion of these sort of things are made in Taiwan, Malaysia, etc.

[ItsMitch]

2 minutes ago, pas008 said:

isnt this going to affect phones/tablets/stereo/tv/etc also?

Everything that has in um so yes. 

Quote

 "electronic integrated circuits: processors and controllers," "electronic integrated circuits: memories," "electronic integrated circuits: amplifiers," "electronic integrated circuits: other,"

Just now, OrbitalBuzzsaw said:

A large portion of these sort of things are made in Taiwan, Malaysia, etc.

ye i did put a note of that 

9 minutes ago, SC2Mitch said:

It's also worth noting that not all of these products come from China,

 

[pas008]

Just now, SC2Mitch said:

Everything that has in um so yes. 

 

 

I can see an couple new companies start up in south korea or other asian countries to have shiipped there then to us lol

[orbitalbuzzsaw]

1 minute ago, SC2Mitch said:

Everything that has in um so yes. 

ye i did put a note of that 

 

<rant>

Yeah, but of note is that most new factories are being built outside of China because as living standards in Chinese cities go up so does the cost of living, requiring factories to pay higher wages, making the profit margins narrower. In countries like Indonesia, Malaysia etc. the average wage is lower meaning that it's easier to offer a competitive wage compared to local industry. For example, the average monthly salary in Indonesia is $183 US (about $2200 per year) whereas the average in China is about $13,000 per year which works out to a bit more than $1000 a month - actually surpassing some poorer parts of Europe. Obviously it increases your margins if you only have to pay $2200 per year per worker as opposed to $13,000 (and probably more for technically skilled workers).

 

</rant>

[ivan134]

MAGA

[Taf the Ghost]

25 minutes ago, pas008 said:

isnt this going to affect phones/tablets/stereo/tv/etc also?

 

I can see an couple new companies start up in south korea or other asian countries to have shiipped there then to us lol

A lot of stuff gets passed through China. You'd be surprised how much "finishing" work is done in China, but a lot of the other manufacturing isn't. Depending on what is in Taiwan vs Mainland China could be interesting.

 

Though, at most, this is probably a 10% Retail hit for cost. A lot of sectors aren't elastic enough to pass on tariff costs, so it'll be split along the entire run from Import to Retail. About the way a VAT works.

25 minutes ago, VegetableStu said:

yeah this only happened because one guy (or his administration) thinks-- oh god this has broken the rules already hasn't it ,_,

Trade Policy is both political and not, at the same time. So we just have to be careful about it.

 

Also, if people didn't realize there's been a brewing trade war between China & the USA for a while, it's only because the media does a lot to hide what's actually going on in the world. Reality is that Western politicians sold out most of their manufacturing bases for personal gain. If you want a fun time, look up Clinton Administration & China. A couple of Chinese nationals & Chinese-Americans did prison time over the money funneled from China to influence US Trade Policy. 

[Drak3]

42 minutes ago, SC2Mitch said:

NO DAMN POLITICS IN MY THREADS

If you don't want to talk abput politics, don't start threads involving politics.

 

6 minutes ago, Taf the Ghost said:

Trade Policy is both political and not, at the same time

Trade policy is 100% political and there's next to no real discussion possible without getting political.

[ItsMitch]

1 minute ago, Drak3 said:

If you don't want to talk abput politics, don't start threads involving politics.

 

thanks for the headsup, i'll be sure to take that into account next time i post a thread !

find it fairly amusing that even when i dont say bring up politics stuff people still find ways of bringing it up

[Drak3]

2 minutes ago, SC2Mitch said:

thanks for the headsup, i'll be sure to take that into account next time i post a thread !

find it fairly amusing that even when i dont say bring up politics stuff people still find ways of bringing it up

You brought it up initially.

[Taf the Ghost]

Also, as a technical matter, the real term is "Trade Normalization". Because of "reasons" (think more "corruption" than "logic"), the USA generally has had low to no tariffs on a lot of goods, yet the USA also can't export into other countries at the same rate. The USA exports over 2 Trillion USD a year, making the USA normally between the 1st to 3rd largest exporter in the world. (It depends on year, raw material prices & currency fluctuations). However, the USA is also the world's largest market & importer. 

 

It's that Balance of Trade issue, and the cost born to much of the nation as a result of gutting many major industries, that has put us where things are at right now. These are hard, strategic & personal interests for 10s of millions of people. Trade Policy is also the place you work to avoid wars. It's much better for things to be ugly there than to escalate. 

[Taf the Ghost]

7 minutes ago, Drak3 said:

If you don't want to talk abput politics, don't start threads involving politics.

 

Trade policy is 100% political and there's next to no real discussion possible without getting political.

Trade Policy is always strategic. It's the politics that dictate who the politicians are actually working for.

 

There's also the reality that while China might put on a nice face, unfettered access to the US Market is the only thing keeping their House of Cards afloat. They've got more debt by total value & percentage than Japan during the Bubble Era. 

[Okjoek]

Shit. Wonder if I should build my new rig sooner than later, was hoping to build later in 2019.

 

We need tariffs though. US workers can't be competing with foreign slave/near-slave labor. We need to make more stuff here and become self sufficient on this hemisphere.

[Taf the Ghost]

1 minute ago, Okjoek said:

Shit. Wonder if I should build my new rig sooner than later, was hoping to build later in 2019.

 

We need tariffs though. US workers can't be competing with foreign slave/near-slave labor. We need to make more stuff here and become self sufficient on this hemisphere.

Retail will eventually see a bump, but that's in several months. And this will likely have a larger effect on your next oil change than computer purchase. A lot of computer parts come from Taiwan, so it's also possible that what you'll see is just specific Brands get hit harder.

 

We might also see a big boom in South Korean Monitors again, lol.

[cj09beira]

45 minutes ago, OrbitalBuzzsaw said:

<rant>

Yeah, but of note is that most new factories are being built outside of China because as living standards in Chinese cities go up so does the cost of living, requiring factories to pay higher wages, making the profit margins narrower. In countries like Indonesia, Malaysia etc. the average wage is lower meaning that it's easier to offer a competitive wage compared to local industry. For example, the average monthly salary in Indonesia is $183 US (about $2200 per year) whereas the average in China is about $13,000 per year which works out to a bit more than $1000 a month - actually surpassing some poorer parts of Europe. Obviously it increases your margins if you only have to pay $2200 per year per worker as opposed to $13,000 (and probably more for technically skilled workers).

 

</rant>

keep in mind that many times you end up needing multiple of those workers plus a worker with a much better understanding of what to do (someone from other countries or much better educated) to compensate for the huge amounts of errors that those cheap workers will do, you would be amused how many times they can fu*** up a simple job ( been there done that, kinda) so many times keeping good quality control becomes a nightmare and costs become higher than they should be.

[S w a t s o n]

Import through CANADA! We can ship down to you, lets make it happen: Canada 2020: Proxy trade state for the US.

Could sweeten NAFTA for you too

[orbitalbuzzsaw]

Just now, cj09beira said:

keep in mind that many times you end up needing multiple of those workers plus a worker with a much better understanding of what to do (someone from other countries or much better educated) to compensate for the huge amounts of errors that those cheap workers will do, you would be amused how many times they can fu*** up a simple job ( been there done that, kinda) so many times keeping good quality control becomes a nightmare and costs become higher than they should be.

Still, you can hire 3 or 4 Indonesian midskill workers for the price of one Chinese midskill worker

[Taf the Ghost]

4 minutes ago, cj09beira said:

keep in mind that many times you end up needing multiple of those workers plus a worker with a much better understanding of what to do (someone from other countries or much better educated) to compensate for the huge amounts of errors that those cheap workers will do, you would be amused how many times they can fu*** up a simple job ( been there done that, kinda) so many times keeping good quality control becomes a nightmare and costs become higher than they should be.

China actually stopped being a "low cost" manufacturer a while ago. What they are, right now, is a 1-Stop Shop. That's about to get upended a good bit.

 

Related to that but Quality Manufacturing costs roughly the same across the Globe. Costs are costs, so it's only by currency & trade policy manipulation you can drive those costs down.

[orbitalbuzzsaw]

5 minutes ago, Swatson said:

Import through CANADA! We can ship down to you, lets make it happen: Canada 2020: Proxy trade state for the US.

2046: United States to reclaim status as China's largest trading partner, economists say

 

Following the revisions to the tariff code by the Jacobsen administration last year the status quo of Chinese goods flowing into the US through Canada seems set to be overturned according to a new study published in Economics Research, although it remains to be seen whether the Pacific Federation will lift its steep tariffs on microprocessor exports...

 

 

[Taf the Ghost]

5 minutes ago, Swatson said:

Import through CANADA! We can ship down to you, lets make it happen: Canada 2020: Proxy trade state for the US.

Could sweeten NAFTA for you too

You already do that. Most of your industries were gutted by the Chinese for that purpose back in the late 1990s.

 

Though if your current PM decides to keep staying on vacation, Alberta might make overtures for being the 51st State again.

[orbitalbuzzsaw]

Just now, Taf the Ghost said:

You already do that. Most of your industries were gutted by the Chinese for that purpose back in the late 1990s.

 

Though if your current PM decides to keep staying on vacation, Alberta might make overtures for being the 51st State again.

And if the current political shitstorm continues I would be surprised if California is still a US state by 2030

[S w a t s o n]

2 minutes ago, Taf the Ghost said:

You already do that. Most of your industries were gutted by the Chinese for that purpose back in the late 1990s.

 

Though if your current PM decides to keep staying on vacation, Alberta might make overtures for being the 51st State again.

LMAO no, you don't seem to understand our economy at all. We sell you our resources: Water, Wood, Energy, OIL, Software now too

[cj09beira]

1 minute ago, Taf the Ghost said:

You already do that. Most of your industries were gutted by the Chinese for that purpose back in the late 1990s.

 

Though if your current PM decides to keep staying on vacation, Alberta might make overtures for being the 51st State again.

their pm is such a joke