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US 50% China Semiconductor Tariff

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EEVblog:
https://twitter.com/POTUS/status/1790385220983677016


--- Quote ---I just imposed a series of tariffs on goods made in China:
 
25% on steel and aluminum,
50% on semiconductors,
100% on EVs,
And 50% on solar panels.
 
China is determined to dominate these industries.
I'm determined to ensure America leads the world in them.
--- End quote ---

Don't make me lock this thread or delete posts because you want to talk politics.
If you want to talk about the practical aspects of this, without the politics, please do so, otherwise do not post in this thread.

My first question is how does this work with say Aliexpress or LCSC etc component orders?

wraper:
Does he want to kill the remaining electronics production? It's literally forcing manufacturers to outsource the assemblies or full production abroad.

5U4GB:
Seems a totally crazy thing to do, half the planet depends on the shopping list of stuff that's just been made vastly more expensive if you're in the US.  So its main effect seems to be to make US industry even less competitive globally than it already is.  As the previous poster said, the only thing I can see happening is it driving even more manufacturing and business out of the US.

Let's just hope that the usual suspects of governments that slavishly copy everything the US does just because the US did it don't copy this particular move.

woofy:
Good luck with that one, seems very short sighted to me.
They may be able to wack a tariff on direct semiconductors from china, but any company needing a chinese device will find a way around it. Simply import through another country.
If the tariff is phrased as "of chinese origin", then define "chinese origin". Here in the UK "country of origin is defined as the last country that major work was performed on, so if a kit was produced in the UK that contained a chinese semiconductor, then the country of origin of that kit is the UK.
Then again, companies could just shift their manufacturing overseas.
It all depends on the exact wording.

forrestc:

--- Quote from: EEVblog on May 16, 2024, 07:29:04 am ---My first question is how does this work with say Aliexpress or LCSC etc component orders?

--- End quote ---

Tariffs are rarely actually applied to tiny orders when importing into the US.   So I'm guessing that a typical hobby-quantity order isn't going to be affected at all, especially since most aliexpress-type sellers intentionally are obtuse on their customs paperwork in order to avoid tariffs.   

For production-quantity orders, you do get charged for the import duty.  The existing tariff in the US is actually 25% on semiconductors and has been a few years now.  The biggest PITA is that distributors are very inconsistent with whether prices include tariff fees or not, so it can be difficult to compare the actual landed cost between suppliers of the same semiconductors.  My purchasing person now knows which suppliers include the tax upfront, which hide it as an 'addon', and which don't mention it at all until you get charged for it unexpectedly.  Suppliers in the last category have become suppliers of last resort for us.   We still get surprised now and again as parts shift manufacturing locations since sometimes the manufacturing site changes unexpectedly.

So, I guess the summary is:  If you aren't seeing any effect today, you're not going to see any when this takes effect, other than certain things manufactured in the US will likely get more expensive. 

Note that there are certain ways for products which are made in China to be reprocessed such that they are no longer considered to be made in China.  For example, if you take silicon from a chinese fab, and then do the leadframe and packaging in a second country, the semiconductor can be considered to be made in the other country.   I know this works the other way as well.  For example, Microchip Technology has fabs in the USA, but most of the packaging is in Thailand or the Philippines.  So when I buy a semiconductor from Microchip Technologies, it's almost always tagged with an origin in Thailand or the Philippines even though the silicon was most likely produced in a fab in the USA.

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