OPINION:
If you want to present a clear picture of the impact of the China tariffs, you need to explain how the tariffs really apply to pricing (“Trump rejects China’s request for a tariff pause as a prerequisite for trade talks,” Web, May 4). If an item made in China costs $100 retail, it will not now cost $245 because of tariffs — yet most of the mainstream media implies that it will. On average, the tariff
applies to the declared value of goods, which is often the cost at the factory
door. That $100 item probably costs between $15 and $25 and the tariff applies to that.
door. That $100 item probably costs between $15 and $25 and the tariff applies to that.
The increase for that $100 item is $22 to $52. Sure, that still hurts, but not like the press is saying.
Apple, for one, does not want customers to know that the cost of an iPhone made in China — hardware, assembly and testing — is less than $600, according to the Wall Street Journal. That is the price on which the tariffs are based. How many customers would support Apple if they knew the true markup?
In this opaque mess of trade war, some clarity helps.
JAMES BARENDS
Wayne, Pennsylvania
In this opaque mess of trade war, some clarity helps.
JAMES BARENDS
Wayne, Pennsylvania
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