• parpol
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    13 days ago

    Don’t video game consoles all have offices in the US? Why would the US apply tariffs on companies residing in and paying tax the US?

      • parpol
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        13 days ago

        Are tariffs applied when a company produces something in one country and transports them to their own company in another country? I thought they only applied to sales.

        • D1G17AL@lemmy.world
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          13 days ago

          The only thing tariffs do is raise the price of imported and exported goods. The intent behind that is to encourage domestic production of a given good. However, we largely do not have domestic production of many, many, many different goods in the USA. So the primary outcome is going to be a decade or more of much higher prices for literally every single kind of consumer, business or industrial grade electronic device or good. It’s terrible for the economy. It will lead to a record recession or even a depression. Tariffs do not punish the target country. They punish Americans attempting to buy from those countries. This means new start-ups and new businesses will not be able to afford things from third-party manufacturers in China.

          • Captainvaqina@sh.itjust.works
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            13 days ago

            Not only new businesses, this will ABSOLUTELY lead to the extinction of already established businesses as well. The magat cretins have ZERO clue how bad this will be.

          • aStonedSanta@lemm.ee
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            13 days ago

            This. It’s basically a fucking stupid version of forcing the increased pricing onto us to increase corporate profits or whatever their end goal is. If China is charged 10% more to get their pieces to us. They are not taking that hit over our internal political retardation.

            • bitchkat@lemmy.world
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              12 days ago

              China isn’t charged shit to send us stuff. The tariffs are paid by the company importing the goods (aka the buyer)

          • ipkpjersi@lemmy.ml
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            13 days ago

            Tariffs do not punish the target country.

            Tariffs punish every country, actually, unfortunately.

            • kent_eh@lemmy.ca
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              13 days ago

              Tariffs punish every country, actually, unfortunately.

              Including the one who started the inevitable trade war.

        • iopq@lemmy.world
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          13 days ago

          You can’t just import something and put it in a local warehouse to avoid tariffs. Then nobody would pay them ever

          • andrew_bidlaw@sh.itjust.works
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            13 days ago

            Some businesses in Russia have loopholes like importing components and making a local assembly, up to just putting their sticker on it. I wonder what % of production process would be enough to count a product as Made in USA.

            • Cheems@lemmy.world
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              13 days ago

              You’re still importing the base materials and have to pay tariffs on that. That’s not getting around anything. The end consumer still foots the bill.

              • rbn@sopuli.xyz
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                13 days ago

                Depends on what the tariffs are about. If there’s a tariff on a specific category of finished consumer goods, an import of the materials/ parts in combination with a local assembly might indeed reduce or avoid the taxes you have to pay.

            • aStonedSanta@lemm.ee
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              13 days ago

              Each piece brought in is taking the hit from the tariff if its under a tariff. The only way to “avoid” is what we call smuggling.

          • parpol
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            13 days ago

            Isn’t that how America does taxes in everything else?

        • krashmo@lemmy.world
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          13 days ago

          I thought they only applied to sales.

          What do you suppose these companies might want to do with their products once they transport them to this other branch location?