President Trump says that flea prices coming “very soon”

President Trump’s radical world rates have shaken the stock market since their announcement on Tuesday, with almost all large two -digit technological companies. However, semiconductors have been largely spared an immediate impact, because the chips of Taiwan and other nations were exempt. Most of the electronic devices sold in the United States are supplied by chips made in Asia, which means that prices would have a significant impact on prices. But Trump told a White House press swimming pool on Thursday that the prices on semiconductors will be imposed “very soon”.

Already, the prices on foreign manufacturing goods have led Nintendo to announce a delay in American pre -orders for the Switch 2 while it assesses the potential impact of the prices. And Klarna, the startup Buy-Now-Pay-Later made a meme to allow customers to pay food deliveries in several payments, delayed its IPO scheduled on Friday. Global economic uncertainty probably harms the profitability analysis to finance burritos chipotle by loans of zero and not guaranteed interest.

President Trump had already threatened to impose significant prices on semiconductors made abroad while the United States aims to build a more crucial technology at the national level. The Chinese closure of Shanghai in 2022 during a COVVI-19 epidemic stressed the risk of counting on long international supply chains for essential manufacturing. TSMC, one of the main manufacturers of fleas that manufactures products for NVIDIA and Apple, has started more than $ 100 billion to open production and R&D facilities in the United States, but scaling takes a lot of time. Dan Ives, analyst at Wedbush Securities, estimated that Apple would take three years and 20 billion dollars to move ten percent of manufacturing in the United States

If President Trump tries to make the United States more competitive in manufacturing, it is logical to include fleas in prices. National manufacturers like Intel count on equipment manufactured abroad to build their chips locally, and with prices in place, this equipment will cost more, which then means that the chips themselves will not be competitive with those built abroad.

Tom material Detailed how the prices of fleas could increase under new prices:

For example, if there is a price of 25% on a NVIDIA AI GPU that the company sells $ 50,000 with a gross margin of 75%, Nvidia will have to declare a value of $ 12,500 and pay an import right of $ 3,125. Such a price will harm either on the sidelines of Nvidia, or make its GPUs more expensive for buyers in America. For new generation data centers from Elon Musk, which should contain a million GPU, this means $ 3.125 billion in additional costs.

President Trump said the prices imposed on Wednesday are intended to create a fair playground for manufacturing. And although it is logical to put a certain manufacture in the United States, it takes many years. The products made in the country will be even more expensive than the alternatives practiced abroad. In the United States, the workforce is expensive and workers’ protections and regulations add to this burden. America has long been an economy of services; In the United States, people don’t want to do hard work.

Certain sectors such as the manufacture of theater can be viable to reshape the United States, as they are higher margin companies than basic products such as toaster or shoes. But it is not clear if physical products made in the United States would never be competitive worldwide. The greatest economy in the world is suitable for services – design products, write code – and leave elbow work to other countries. Even if the manufacture of sustainable products returns to America, there is a widespread belief that a large part of it will be automated, as with the Tesla Optimus robot. Amazon continued to invest massively in the automation of its factories.

Under the prices, we could consider Americans pay more for lower quality products, in particular the new tax regressive for low -income Americans. And for companies, they could make American companies less competitive because their costs of doing business will be higher. And it is at a time when China rushes in areas like AI and the automobile.

Many economists believe that a budget deficit, which the United States is currently facing, means that the country spends more import goods than export. But there are other ways to balance books that would not harm Americans in the process, such as negotiation of drug prices.

The president of the federal reserve, Jay Powell, said on Friday that Trump’s prices will probably stir up “higher inflation and slower growth” and warned that unemployment could increase after several months of force. But he added that the federal reserve will not immediately reduce interest rates, which could alleviate the impact. That is to say, Powell does not plan to bail out Trump despite generalized criticism of the tariffs among the business world.