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piyushpr134 | 7 months ago

US can simply put 20% tariffs on taiwan/chinese chips and this would be absorbed

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epolanski|7 months ago

And how does that make american IT companies with datacenters, etc, more competitive?

jeroenhd|7 months ago

In the short term, chips would just be 5-20% more expensive in the US compared to anywhere else. They'd need to raise the tariffs a bit more, though, to make sure there's incentive to increase production to a level that can satisfy demand.

In the long term, it would provide the US with an independent source of chips, and eventually allow them to let go of any plants to protect Taiwan from China.