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by hector_ka
2916 days ago
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I am a small electronic board manufacturer in US.
I buy bare PCB boards from China and populate them here.
Usually the parts are bought from Digikey, Mouser or other distributor.
Adding a 25% tax will not incentivize any American company to start produce parts here.It is way to little and to late.
If 10 boards are $2 in China, are maybe $30 in US , so even you put 100% import tax, the China price is still
competitive.
The law is unfairly hitting the small US companies. Sparkfun , Adafruit will be hit, but not Apple or HP because they are finishing the product in China.
The only ones winning from this is the US government that is getting 25% of the money .
This is definitely not creating jobs. |
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On the other hand I'm a small open source hardware manufacturer in New Zealand, I manufacture and ship from China - because I couldn't make a competitive product is I built or shipped stuff from here, I live at the end of the world's supply chain - NZ has almost no trade barriers, removed all govt subsidies propping up industry decades ago - we do have free-trade agreements with China - this new regime is good for me Trump's 25% trade barrier let's me compete better against American competitors, driving up their costs but not mine.
Remember you (in the US) have a higher standard of living than China - it's why your labour costs more - frankly you can't compete (and as their standard of living rises China can't compete with Vietnam .... we're already seeing that) - this is how 3rd world countries become 1st world ones, it's how China is building a middle class, which is a good thing, countries with large happy middle classes have a lot to lose and don't like to go to war.
Long term this process will tend to drag the US and China's standards of living to similar levels, if you can keep growth happening in the US at higher rates than China then you may see no change, if you stifle jobs you'll see it drop. Short term this is a problem, longer term looking at the bigger picture it's probably a good thing, a safer world