this post was submitted on 28 Jan 2025
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Summary

Trump plans to impose tariffs of up to 100% on semiconductors manufactured in Taiwan, aiming to push U.S. tech companies like Apple, Nvidia, and AMD to produce chips domestically.

The tariffs target Taiwan's TSMC, a key supplier, despite its partial U.S. production in Arizona.

Trump criticized Biden’s CHIPS Act for funding companies like Intel and proposed tariffs as an alternative incentive.

Experts warn the move could raise prices for electronics as most TSMC chips are assembled in Asia before export to the U.S.

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[–] Cocodapuf@lemmy.world 19 points 2 days ago (4 children)

This is really dumb for a number of reasons. But first and foremost, we have a strong alliance with Taiwan, we should be trying to maintain that connection and not let our relationship become hostile. We have military bases in Taiwan, this is part of how we keep a close eye on China. If nothing else, Taiwan is strategically important to us.

In other words, don't fuck up years of successful diplomacy to make a quick buck like a nearsighted moron.

[–] alvvayson@lemmy.dbzer0.com 12 points 2 days ago (2 children)

Thing is, his real goal is to fuck up that alliance.

Trump has been compromised by the Russians ever since they bailed him out in the 90s. He is actively dismantling American global power, just in a way that is wrapped in a US flag so that the voters don't realize it.

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[–] eran_morad@lemmy.world 2 points 1 day ago

like a nearsighted moron

Uh, thing is, that's 99.999999% of republicans right there.

Taiwan is only strategically important to the us because it manufactures those chips. Trump's goal is to increase production in the us, so we aren't forced to intervene when mainland China comes for them.

[–] ylph@lemmy.world 1 points 2 days ago

We have military bases in Taiwan

The US does not have military bases in Taiwan anymore - not since the US switched diplomatic recognition from the ROC to the PRC in 1979 - one of the concessions to the PRC was the removal of US military presence from Taiwan.

[–] fnrir@lemmy.world 12 points 2 days ago (1 children)

[...] proposed tariffs as an alternative incentive.

He learned one word and basis his entire view on economy on it.

[–] bitchkat@lemmy.world 3 points 2 days ago

He learned how to pronounce a word but only has concepts of its meaning. He still thinks the exporter pays tariffs.

[–] IHeartBadCode@fedia.io 141 points 3 days ago (1 children)

This is so silly.

Trump: I'm going to put a 100% tariff on your goods if you don't start building them here.

TSMC: Yeah, we're doing just that next year. We're already fabbing them there in the US.

2026 rolls around and the final part of TSMZ in AZ is complete

Trump: I'm such a fucking genius.

And Republicans will eat this shit up.

[–] _cryptagion@lemmy.dbzer0.com 10 points 3 days ago

Why do you think he decided to do it?

[–] Maggoty@lemmy.world 118 points 3 days ago (4 children)

This dumb motherfucker is going to make our missiles twice as expensive.

[–] mvirts@lemmy.world 29 points 3 days ago

Good think I didn't throw out all those discrete transistors, we're in for a loooot of soldering

[–] FlyingSquid@lemmy.world 21 points 3 days ago (4 children)

Half of his actions in the past week, especially in the past couple of days, have done things to weaken the U.S. military. It can't all be accidental. There's too much.

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[–] DicJacobus@lemmy.world 24 points 2 days ago (2 children)

This is signalling that the US Is geopolitically abandoning Taiwan, Surrendering it to China. Looks like a backdoor deal has been made, CCP will move in by 2030. And the US isn't going to fight

Every single person who calls themselves Ukrainian should be thanking their lucky stars Biden was in the whitehouse when Putin decided to start the Russkiy Mir game. Trump would have sold the country out and they would have lost their sovereignty with a whimper, and not a penny of support from the west. At least they were given a chance to fight their aggressors. Taiwan on the other hand, will lose everything, including their dignity.

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[–] empireOfLove2@lemmy.dbzer0.com 78 points 3 days ago (1 children)

Yet another tariff that is somehow magically against an American ally and not against Russia or China.

[–] ZILtoid1991@lemmy.world 10 points 3 days ago (1 children)

The US allies also need to get their hands on the pee tape or whatever the US enemies have in their hands...

[–] rickyrigatoni@lemm.ee 13 points 3 days ago (4 children)

Is there really anything anyone could use to blackmail trump? There could be a video of him eating a baby alive and a third of the country would still support him, and another third of the country wouldn't even notice.

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[–] mvirts@lemmy.world 88 points 3 days ago (6 children)

TSMC opened a factory in Arizona, so it's really a big f u to the people of Taiwan while the owners of tsmc are good to go.

I get the bring jobs to the US bit, but the cost will be passed on to consumers and the whole market will shrink. There are existing chip fab facilities in the US, maybe efforts should focus on why they can't compete instead of reducing demand for electronics inside the US.

[–] fuckwit_mcbumcrumble@lemmy.dbzer0.com 57 points 3 days ago (1 children)

Chips can't even be fully produced here. You can make the chip here, but the packaging and some other things need to happen in Taiwan still. Until they get that goin the fab in the US is almost useless.

[–] mvirts@lemmy.world 49 points 3 days ago (1 children)

Not to mention all the really cool machines that make the chips are made in Europe

[–] Tja@programming.dev 23 points 3 days ago (2 children)

It's almost like we are in a global economy!

[–] FlyingSquid@lemmy.world 13 points 3 days ago

WHY CAN'T EVERYTHING IN THE WORLD JUST BE MADE IN AMERICA!???!

DON'T THEY KNOW THAT'S WHAT JESUS WANTS??!

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[–] kryptonianCodeMonkey@lemmy.world 23 points 3 days ago (2 children)

The breadth of products and industries this will touch is going to be massive. Even if you're not buying electronics from a company, those companies still have to buy and replace their own electronics to operate which, if those prices go up, it raises operating costs. Your cheeseburger can get a bit pricier because of this.

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[–] Etterra@discuss.online 6 points 2 days ago

Prediction: In under a month they'll cut a deal to give American companies huge discounts and all pretense of "encouraging US production" will evaporate.

[–] fushuan@lemm.ee 34 points 3 days ago (3 children)

So if I buy a smart toaster from overseas and that toaster was built with microchips, but is then sold to the US via another country... That would avoid the tariff, no?

Doesn't this literally do the inverse of boosting local manufacturing?

[–] NuXCOM_90Percent@lemmy.zip 16 points 3 days ago* (last edited 3 days ago) (2 children)

Tariffs are the kind of tool that... is almost always the worst possible choice as a punitive action. The cost is inherently passed to the local populace. So, at best, people are deprived of a luxury. At worst, people are paying an increased cost for a necessity.

Tariffs only actually work when you already have a comparable infrastructure and are trying to force the local populace to use it. Theoretically, those are the Intel and TSMC (...) fabs in the Southwest (?). But none of them are anywhere near ready to handle the consumer electronics that consumers actually want.

And yeah. A strict tariff would not impact a case where companies two hop products (which is basically how all "made in america" stuff works but that is a different mess). That said, if the tariffs on Canada take effect Saturday, it will still be very significant costs to US consumers as anything would need to be imported from Europe (MAYBE Mexico but that adds other issues).

That said, we aren't living in a world of laws. So "tariffs" on actual companies that are deeemed to be doing workarounds could happen. How enforceable that would be is anyone's guess, but you can be sure that everyone will be glad to jack up their prices because Apple might have to.

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[–] LittleBorat3@lemmy.world 12 points 3 days ago

The real question you did not ask is if this toaster is smarter than Trump.Yes it is.

[–] finitebanjo@lemmy.world 8 points 3 days ago (1 children)

It's also weird that we would Tariff Taiwan while they're in the middle of a losing power struggle with China.

[–] Duamerthrax@lemmy.world 8 points 3 days ago (1 children)

Not weird when you realize that either the CCP or one of the Chinese companies that are required to have party members on board, "donated" to Trump's inauguration fund.

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[–] x00z@lemmy.world 51 points 3 days ago (5 children)

It's pretty funny how this is an attack that could backfire extremely.

Almost all of the advanced chips are made using ASML EUV machines. Which is a Dutch company.

If Trump continues on this path of self-destruction, attacking countries and companies around the world, the US might just end up with sub-par chip production like China has. (They have old ASML machines and aren't getting any new ones). TSMC is one of the biggest partners of ASML and has a LOT of cards to play to get ASML to not supply any machines to the US.

It's absolutely horrid that a boy like Trump has any power and doesn't even know that his attacks are nothing more than a punch to his own balls. A normal politician would work on alliances to get chip production going in the US before fucking over all the companies relying on chips. Stuff like subsidies for local chip production are not news worthy enough for him to get any kick out of so he just flexes his power.

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[–] ramble81@lemm.ee 28 points 3 days ago (6 children)

Let’s explain tariffs so that even a baby like trump could understand.

If an item is sold for $1 and you put 100% tariff on it, it now costs $2 for a consumer in the US to buy. The government doesn’t get to take the $1 that the company is selling it for, they still make their $1 regardless of the tariff. All this does is force the US buyer to pay more.

I guess he could understand it if this is designed to funnel more money to the government but it’s gonna start impacting his tech bro handlers.

[–] Noodle07@lemmy.world 9 points 3 days ago

It makes a lot of sense if the government money is now his own money

[–] Geobloke@lemm.ee 5 points 2 days ago

I just want to add one thing, the people in the country that issue the tariff also have no incentive to ignore the new price floor that the tariff represents. Instead, they will set their price to just below the new tariff floor and pocket what ever difference there is

[–] CidVicious@sh.itjust.works 6 points 3 days ago (1 children)

What ends up happening in reality is that the tariff cost is effectively shared between the company selling and the customer (but not evenly). The company realizes that sales will plummet if the new price is $2, so they shave margin on their end to bring the price down to e.g. $1.75. But there's obviously a lot of complexity behind exactly how much of the tariff cost is borne by the customer and the seller and it will vary by industry.

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[–] thericofactor@sh.itjust.works 44 points 3 days ago (1 children)

Just when you thought he couldn't get any dumber. Advanced microchips are one of the highest in demand commodities in the world. TSMC will have no problem selling them to the rest of the world outside of the U.S.

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[–] garretble@lemmy.world 48 points 3 days ago (2 children)

Yeah, we’ll be able to build usable chip factories here in the states in no time. That surely doesn’t take several years to get set up.

[–] Nougat@fedia.io 47 points 3 days ago

Especially when the dumbass halted the CHIPS program which was intended to do precisely that thing.

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[–] _cryptagion@lemmy.dbzer0.com 23 points 3 days ago (1 children)

We tried that already, it didn’t work. The Taiwanese teaching us how to make them said Americans were too lazy to learn, and the Americans said the Taiwanese were insane.

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[–] psvrh@lemmy.ca 41 points 3 days ago (2 children)

Is the intent to make Taiwan just roll over and invite China in?

Because it sure fucking looks like it.

[–] ccunning@lemmy.world 16 points 3 days ago

Question: How much did Taiwan donate for the “inauguration”?

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[–] adarza@lemmy.ca 36 points 3 days ago

what a fucking idiot.

wants 'made in usa' chips.

usa literally can't make them.. only certain parts of them.. and not near enough to 'go around' and meet even just the domestic demand. not now, not in a decade. not in two decades. it ain't happening.

criticizes efforts to get more of them made here. reasoning being, of course, equal parts of: something biden did that's seen as good and he dont like that, and money being spent that could be funneled to him and his comrades and donors instead).

instead wants to put a 100% tax on imports as 'punishment'. which could be the trigger that puts the economy into a tailspin that hasn't been seen in nearly 100 years. semiconductors are that important, taiwan makes that many of them, and the usa does not.

you know damn well those tariff funds would never go towards improving american production capabilities.. it would just fund more tax cuts for his wealthy donors.

[–] avidamoeba@lemmy.ca 31 points 3 days ago

Nvidia, AMD, Qualcomm and all other fabless chip designers must be thrilled.

Taiwan must be thrilled too. That silicon shield may crack earlier than expected.

[–] JackbyDev@programming.dev 4 points 2 days ago

Yeah, let them just fire up the chip factory right away. 🙄

I want more domestic manufacturing, but it doesn't happen overnight.

[–] Hegar@fedia.io 23 points 3 days ago

The reason for doing this is specifically because it's so damaging to the US. Surprise surprise, a government hand picked by an adversary is intentionally destructive.

[–] dudeami0@lemmy.dudeami.win 22 points 3 days ago (1 children)

Nvidia about to be selling through another country as Mvidia with their Shifty 90 series.

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[–] Aurenkin@sh.itjust.works 12 points 3 days ago

Fortunately chips aren't in many products so this should really help the cost of living. Great work!

/s

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