What a gift. What a great idea. That'll surely spur innovation and domestic production and have no effect to further insulate the giants from competition.
So it’s actually an incentive to build in China.
https://news.ycombinator.com/item?id=43665766
Then you don't pay the tariff.
Electronic imports, no/low tariffs.
Import material to produce electronics, high imports.
It seems like some of these comments are missing how competition works.
Competition happens within the same type(s) of goods, not across them.
That is, the companies making the goods still affected by tariffs aren’t in competition with the companies making goods now exempt by tariffs.
Yes, its true that they will have a better chance at thriving under these exemptions, but whether they thrive or not should have little impact on the other companies.
To be clear, I’m not arguing in favor of this decision — or any of the tariffs, for that matter.
I’m just simply arguing that competition isn’t really the angle to use to argue against this particular decision.
Not true, for example smart phones replaced home computers for most people. Those are two very different goods, but since they can accomplish the same thing for the average person they end up competing.
Nor is it cheap or easy to build a company that would likely be able to appeal tariff exemptions…
Note that this is not an exemption for companies, but an exemption for goods:
> A new list of goods to be exempted from the latest round of tariffs on U.S. importers was released, and it includes smartphones, PCs, servers, and other technology goods, many of which are assembled in China.