Trump wants to levy extra tariff on all Chinese goods, but here’s the catch: there are actually a few different types of “Chinese” goods. And if we’re not careful, we will be shooting ourselves and our allies in the foot.
American Goods Made in China: Nike, Coach, GM and countless number of other American companies manufacture their goods in China and ship them to the US. So while Trump may be happy he’s taxing “China,” he will really be taxing an American company.
Goods with Global Parts Assembled in China: You can tax an iPhone because it comes from China, but all the valuable stuff in an iPhone really come from South Korea (Samsung), Japan, Taiwan, Germany and the US. China gets only 5% of the value of an iPhone. So if you tax the hell out of an iPhone, you’re really taxing the hell out of our…
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