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by mft_
417 days ago
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> This headline is misleading because it makes it seem like tariffs are a step function that activate below 85%, which isn't true. > The formula is a simple, linear equation: tariffs = 0.25 * MSRP * (percent foreign content - 15) Um... unless I'm missing something, agree it's not a if/then rule, but in practice, that's exactly how the formula works? 84% domestic = 16% foreign = 0.25 * MSRP * (16-15) = 25% tariff on 1% of MSRP 85% domestic = 15% foreign = 0.25 * MSRP * (15-15) = 25% tariff on 0% of MSRP - which is nothing 86% domestic = 15% foreign = 0.25 * MSRP * (14-15) = 25% tariff on -1% of MSRP - but let's assume the Gov't isn't going to pay companies so effectively 0% again So yes, it's a tariff that effectively activates below 85% domestic content. |
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