News for hackers. Stuff that matters.
Re:US reportedly forcing TSMC to buy 49% stake in Intel to s... by wat10000 on Wednesday August 06, 2025 @07:56AM (#44810797)
They can do that without tariffs too.
Re:US reportedly forcing TSMC to buy 49% stake in Intel to s... by SirMaster on Wednesday August 06, 2025 @11:01AM (#44812949)
But why would they if they don't have a competition on price without a tariff?
Re:US reportedly forcing TSMC to buy 49% stake in Intel to s... by wat10000 on Wednesday August 06, 2025 @11:58AM (#44813741)
Why wouldn’t they have competition?
Re:US reportedly forcing TSMC to buy 49% stake in Intel to s... by geysersam on Wednesday August 06, 2025 @04:58PM (#44817765)
Even if you assume perfect competition costs like tariffs can be passed back to producers.

Imagine a demand and a supply curve. From the perspective of a producer outside the country the tariff effectively shifts the demand curve, but doesn't affect supply. That's going to lead to a lower price at equilibrium.

Of course, from the perspective of the consumer it's the opposite situation, the supply curve shifts which leads to a higher price at equilibrium.

Both happen simultaneously, who pays most of the tariff depends on the elasticity of the supply and the demand