A little bit more about tariffs.

[bubblegum]

You do realize that building an big aeroplane is a bit complicated. Take the Boeing Dreamliner. Parts are sourced from all over the world and cross border multiple times. Some of those parts actually cross borders hundreds of time. So a little chip needed for lets say an wing flap is sourced from Taiwan. Why? Because they have a factory just making these. They are used in all aircrafts. The cost is cheap and reliability has been proven over the last 50 years or so.

Now this chip costs 1 dollar to buy. And at the end of the cycle, when the plane is finished it has made a world tour. Every time some or just a little bit is taxed. Well now the minimum is 10 %! 

 

Not 10% in total, 10 % per crossing. Hundreds maybe even a thousand times it crosses a border.

 

So the chip goes from 1 dollar to 1.10 dollar etc.

 

So Maga's since you all are, according to this forum, economist, how much dollar would this chip cost in the end?

[blaze master]

23 minutes ago, bubblegum said:

 

Not 10% in total, 10 % per crossing. Hundreds maybe even a thousand times it crosses a border.

 

Wrong. You should learn customs regulations before you make comments like this. 

[bubblegum]

2 minutes ago, blaze master said:

 

Wrong. You should learn customs regulations before you make comments like this. 

Well dear Blaze, feel free to explain.

[blaze master]

Just now, bubblegum said:

Well dear Blaze, feel free to explain.

 

Many of those crossings are considered temporary imports and are therefore exempt of tariffs and taxes. 

 

A very simplified answer but should help. 

[BritManToo]

30 minutes ago, bubblegum said:

So Maga's since you all are, according to this forum, economist, how much dollar would this chip cost in the end?

Once China invades Taiwan they won't be available at any price, so best the USA makes them in house.

Or would you prefer China have the ability to control all the worlds aircraft manufacture?

[Celsius]

1 minute ago, blaze master said:

 

Many of those crossings are considered temporary imports and are therefore exempt of tariffs and taxes. 

 

A very simplified answer but should help. 

 

If that's the case why are car manufacturers panicking?

[blaze master]

2 minutes ago, bubblegum said:

Well dear Blaze, feel free to explain.

 

I had a client before called Johnson Controls where I daily dealt with this very issue. 

[blaze master]

Just now, Celsius said:

 

If that's the case why are car manufacturers panicking?

 

It doesn't apply to all parts. That's why. Show me a company that wouldn't panic seeing their bottom line affected.

[placeholder]

1 minute ago, blaze master said:

 

Many of those crossings are considered temporary imports and are therefore exempt of tariffs and taxes. 

 

A very simplified answer but should help. 

Border-Crossings Accumulation

Automobiles and their parts rarely cross the U.S. border once. Parts like engines, transmissions, or other automotive components potentially crossing the U.S.-Canada and U.S.-Mexico borders up to seven or eight times before being assembled into a finished vehicle. It is unclear whether the proposed 25 percent tariffs by Trump would apply to each component every time it crosses the U.S. border or only once. If the former scenario is true, then the tariff’s accumulation would exacerbate burdens on consumers and businesses alike.

https://www.csis.org/analysis/stacking-effect-trump-administrations-auto-tariffs

[blaze master]

1 minute ago, placeholder said:

Border-Crossings Accumulation

Automobiles and their parts rarely cross the U.S. border once. Parts like engines, transmissions, or other automotive components potentially crossing the U.S.-Canada and U.S.-Mexico borders up to seven or eight times before being assembled into a finished vehicle. It is unclear whether the proposed 25 percent tariffs by Trump would apply to each component every time it crosses the U.S. border or only once. If the former scenario is true, then the tariff’s accumulation would exacerbate burdens on consumers and businesses alike.

https://www.csis.org/analysis/stacking-effect-trump-administrations-auto-tariffs

 

It's not so simple as you are making it out to be. 

 

Temporary imports receive exemption. 

[bubblegum]

The part is used in making a new product so...

[bubblegum]

6 minutes ago, BritManToo said:

Once China invades Taiwan they won't be available at any price, so best the USA makes them in house.

Or would you prefer China have the ability to control all the worlds aircraft manufacture?

Go back to bed.

[GroveHillWanderer]

Just now, blaze master said:

 

It's not so simple as you are making it out to be. 

 

Temporary imports receive exemption. 

You keep saying that. Do you have a source that confirms that? I'm not saying you're wrong, but having some kind of link to a reliable source would be nice.

[placeholder]

3 minutes ago, blaze master said:

 

It's not so simple as you are making it out to be. 

 

Temporary imports receive exemption. 

As the article says, it's uncertain. Actually, your explanation is the simplest one. Whether it's accurate or not awaits either an explicit explanation from the Trump administration or from when the tariffs are actually imposed.

[bubblegum]

As of April 5, 2025, there is no active temporary tariff exemption specifically for Boeing parts. Recent developments have led to the imposition of new tariffs affecting the aerospace industry:WSJ+1WSJ+1

• End of Duty-Free Status: The U.S. administration has introduced tariffs that terminate the 45-year duty-free status previously enjoyed by aerospace manufacturers like Boeing and Airbus. This change disrupts a longstanding World Trade Organization agreement that allowed tariff-free trade of aircraft and components among member countries.

[jvs]

A rather small company like ASML could control much of the chip industry.

[blaze master]

1 minute ago, GroveHillWanderer said:

You keep saying that. Do you have a source that confirms that? I'm not saying you're wrong, but having some kind of link to a reliable source would be nice.

 

Ok sometimes auto parts are imported into Canada and have some minor work done on them. They are immediately sent back across the border after the work is done. Many factors go into determining if the part can be classified as a temporary import. Certain Criteria must be met.

 

When they do they fall under hs code 9993.00. 

 

This classification allows the parts to be considered tax exempt.

 

Not all parts crossing will meet the requirements. Hence the automakers being pissed as it will effect their bottom line. 

[blaze master]

4 minutes ago, bubblegum said:

As of April 5, 2025, there is no active temporary tariff exemption specifically for Boeing parts. Recent developments have led to the imposition of new tariffs affecting the aerospace industry:WSJ+1WSJ+1

• End of Duty-Free Status: The U.S. administration has introduced tariffs that terminate the 45-year duty-free status previously enjoyed by aerospace manufacturers like Boeing and Airbus. This change disrupts a longstanding World Trade Organization agreement that allowed tariff-free trade of aircraft and components among member countries.

 

This was a company specific exemption. There are still different rules for temporary imports of any kind. 

[GroveHillWanderer]

8 minutes ago, blaze master said:

Ok sometimes auto parts are imported into Canada and have some minor work done on them. They are immediately sent back across the border after the work is done. Many factors go into determining if the part can be classified as a temporary import. Certain Criteria must be met.

 

When they do they fall under hs code 9993.00. 

 

This classification allows the parts to be considered tax exempt.

 

Not all parts crossing will meet the requirements. Hence the automakers being pissed as it will effect their bottom line. 

OK, but  as far as I can tell, you're talking about how it used to work in the past. This is a whole new regimen of tariffs. 

 

We don't know whether the old rules are going to apply here (again, unless you have a link to something that speaks athoritatively to how this will work under the new scheme).

 

The article @placeholderquoted from said it's not clear whether under this newly announced tariff scheme, each border crossing would attract tariffs or not.

[blaze master]

12 minutes ago, bubblegum said:

The part is used in making a new product so...

 

This is also not so simple too. Before with nafta...and I'll assume with usmca...for a good to qualify as a nafta origin only a certain percentage of the total product needed to be from say Mexico. 

 

I will guess that part of why trump is doing this is because of the shady tactics China is using in Mexico now to avoid duties

 

Only my opinion but was In the industry for many years.

[blaze master]

Just now, GroveHillWanderer said:

OK, but  as far as I can tell, you're talking about how it used to work in the past. This is a whole new regimen of tariffs. 

 

We don't know whether the old rules are going to apply here (again, unless you have a link to something that speaks athoritatively to his this will work under the new scheme).

 

The article @placeholderquoted from said it's not clear whether under this newly announced tariff scheme, each border crossing would attract tariffs or not.

 

I'm making the assumption that certain regulations will still apply. Which is more likely.

[GroveHillWanderer]

1 minute ago, blaze master said:

 

I'm making the assumption that certain regulations will still apply. Which is more likely.

And I had made the assumption that when Trump announceded "reciprocal" tariffs, it wouldn't include putting tariffs on countries that don't impose any tariffs on the US. You know, in the spirit of reciprocity and all.

 

However, that assumption has turned out to be false. Singapore is one example. They have no tariffs on US imports, yet they are subject to a 10% rate under this newly announced scheme.

[NoDisplayName]

28 minutes ago, GroveHillWanderer said:

You keep saying that. Do you have a source that confirms that? I'm not saying you're wrong, but having some kind of link to a reliable source would be nice.

 

What gets a reprieve from Trump’s tariffs? Understanding the USMCA

 

And in the case of goods that cross the border multiple times, such as auto parts, drawbacks are available, meaning the tariff rate is effectively zero.

 

https://www.theglobeandmail.com/business/article-what-gets-a-reprieve-from-trumps-tariffs-understanding-the-usmca/

[blaze master]

3 minutes ago, GroveHillWanderer said:

And I had made the assumption that when Trump announceded "reciprocal" tariffs, it wouldn't include putting tariffs on countries that don't impose any tariffs on the US. You know, in the spirit of reciprocity and all.

 

However, that assumption has turned out to be false. Singapore is one example. They have no tariffs on US imports, yet they are subject to a 10% rate under this newly announced scheme.

 

The temporary import aspect won't change too much. The value of good would go up hundreds of percent. Speaking for auto parts.

 

Not going to happen. 

[placeholder]

3 minutes ago, NoDisplayName said:

 

And in the case of goods that cross the border multiple times, such as auto parts, drawbacks are available, meaning the tariff rate is effectively zero.

 

https://www.theglobeandmail.com/business/article-what-gets-a-reprieve-from-trumps-tariffs-understanding-the-usmca/

That's old news. This is more recent

"However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.

USMCA-compliant auto parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content."

https://www.nbcnews.com/business/autos/trump-auto-tariffs-which-companies-how-much-when-what-to-know-rcna198223

[bubblegum]

17 minutes ago, blaze master said:

 

This is also not so simple too. Before with nafta...and I'll assume with usmca...for a good to qualify as a nafta origin only a certain percentage of the total product needed to be from say Mexico. 

 

I will guess that part of why trump is doing this is because of the shady tactics China is using in Mexico now to avoid duties

 

Only my opinion but was In the industry for many years.

I'm talking Boeing. Not Mexico/Canada/Usa. Big parts of Boeing come from Italy.

 

Now might be the time to apologise for your first comment, clearly out of line.

[blaze master]

Just now, bubblegum said:

I'm talking Boeing. Not Mexico/Canada/Usa. Big parts of Boeing come from Italy.

 

Now might be the time to apologise for your first comment, clearly out of line.

 

Not at all. You need to understand temporary imports first. It's you who mentioned it to begin with.

[bubblegum]

Just now, blaze master said:

 

Not at all. You need to understand temporary imports first. It's you who mentioned it to begin with.

I never mentioned temporary imports. YOU did. I talk about Boeing, you go to auto parts!

 

I'm talking tariffs. ALL over the world tariff. Try and keep up.

 

 

[blaze master]

Just now, bubblegum said:

I never mentioned temporary imports. YOU did. I talk about Boeing, you go to auto parts!

 

I'm talking tariffs. ALL over the world tariff. Try and keep up.

 

 

 

You didn't mention temporary eh  ?

 

1 hour ago, bubblegum said:

Parts are sourced from all over the world and cross border multiple times. Some of those parts actually cross borders hundreds of time.

 

What do you think this means ? Try to keep up right.

[1FinickyOne]

1 hour ago, BritManToo said:

would you prefer China have the ability to control all the worlds aircraft manufacture?

Do you think they might consider making the seats a bit wider and more comfortable?