How trade wars hurt gadget makers
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- เผยแพร่เมื่อ 6 ก.ย. 2024
- On the season finale of In The Making, Ashley Carman talks to gadget makers and creators about how political policies around tariffs affect their businesses. They’re subject to the whims of politicians, just like everybody else, and the repercussions could impact us, the consumers.
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Thanks for tuning in to the first season of In the Making! What topics would you like to see in the future?
Can you maybe explain the "space wall" I keep hearing about, and explain what it's made of, and why we need it?
The right to repair
I'd like to hear more about the process of turning an idea into a physical product
Anything useful... ?! 😂😂😂😂
I would like to hear about how companies go through prototyping of goods
So big companies like Apple still keep on making buckets of profits but smaller businesses face the fire and fury? Seems fair to me
A Clapham that’s the American way.
Apple plans to move to India, that would require totally new factories.
You have the money you get to write the rules.
small businesses may have to diversify their supply chains with a 25% incentive.
note how fringe the examples are if you want to know the real story.
and none of this would have been necessary if previous regimes had done their jobs.
Big businesses can afford to lose some money whereas small businesses cannot afford to lose money. Either way, it's not a sustainable way of doing business. It'll not be worth it
I work for an electric motor shop. One of our manufacturers we sale/represent is Made and headquartered in China. They were affected by the tariff and they increased prices by putting a tariff charge on the invoice. This means that we have to spend more money as a company to get the same product as before. As a result we had to raise prices to our customers. The good thing is the motor manufacturer in question has vowed to lower prices again once the trade war ends. But that doesn’t change the fact that at the end of the day the consumer is the one who pays for the tariff.
that art installation is sooo cool👍👍
Look up Daniel Rozin. He's been doing interactive versions for years. Anyone who likes this would love his stuff!
Stockmarket? Down
Prices? Increase
Soybean farmers? Angry
Hotel? Trivago
TRUMP 2020
@Red Dead TRAMP 2016
if its all going your way why are you so upset then.
doesn't add up.
"Trump can't...." oh yes he can.
It’ll all work out. We’ve gone through 3 tariffs so far
@@Eli-qr9hc lmao tell that to the soybean farmers
This is literally just all helping bigger companies monopolize the electronic economy
Yeah. Let's ignore rampant child slavery to help our businesses !!! 😃
because you can't find parts anywhere else....
as if apple is actually competing with the strange fringe examples they dug up in this video.
@@omgwtfbbqstfu No. Simply no. You can't find parts anywhere else because nobody could compete with China. Who can compete with a company which pays their employees 5$ a day? Continuing to import products from those companies is passive acceptance that this kind of politics is ok. Are you ok with it?
"In the Making" series is real good! So much informative, and it covers things which I personally haven't thought about before. It is the shows like this because of which the Verge feels like it is more than just a TH-cam channel. Keep up the good work! Proud of the team!
Thank you for watching! -Ashley
U.S companies and consumers ultimately bears the burden of the tariffs.
Seeyay - If that's the case, then why is China so angry about the tariffs?
@@icontrolmyownguns2096 because that means products/materials will have to come from a different country ruining China's economy
Seeyay don't be stupid . tariffs affect all parties involved. Not just the US
Seeyay so far they had it easy
So the tax isn't high enough to make it cost effective to do it here, just high enough to increase prices to consumers. Art of the deal.
Welcome to Brazil lifestyle.
well... just a little taste. Look at the bright side, it could be worse.
Brazil is a net exporter, we aren't, that's the difference.
They don’t get healthcare, tho.
The people interviewed are of course careful with their words, but you can tell that none of them are happy with the tariffs. Thanks, Ashley.. great series.
Well, you can't raise taxes, but you can impose tariffs. Sneaky politicians
Tariffs are taxes and US companies and consumers ultimately bears the burden of the taxes.
Politicians it’s just Trump mate the guys talking the USA back to 1930s economic policy ... he be olddddd
People argues that the tariff would force supply chain to move out of China.
But NOPE, I don't see that happening.
No other country has the scale of producing all the products（tens of thousands from toys to containership from oven to machines） you see，millions of engineers、sufficient amount of electricity for mass production 、capacity of ports、excellent traffic infrastructure such as highway network、a single domestic market which can keep the price down.
The only one that can be competative to China is India but it'll take them years to catch up, after all it took China 40yrs to become the world-factory.
Great video Ashley, thanks for highlighting some details on this trade stuff. The idea that parts are tariffed but final assembled products are not is completely mind blowing, how is that strategy going to help our North American businesses.
10:38
Unintentional serial killer face
I felt my soul shift a little to the left
😲😲😲
Thanks verge !! this was really important to understand, if a country apply tariffs it only hurts it's own hardware manufacturer. I try explaining this to people but they don't understand. It's so tuff for companies making electronics hardware. i remember waiting days and days for parts i ordered and also over paid for then by 40% because india has so much tariff on every thing.
So High tariffs means I don't get to look at motorized shinny blocks do things. WTF is this?
you're missing the point. High tariffs means that the cost of goods used to manufacture goes up. In order to negate these losses, that extra cost is passed down to the consumer level, with the increase in prices for the final product
@@fernank017 You're missing the point, they had to dig deep to find examples, which kind of tells the real story of how weak their case is. They couldn't even come up with items so specialized no other sources could easily exist. These are simple products where incentives could easily lead to the growth of alternative supply chains.
@@omgwtfbbqstfu lmao you're delusional if you think that government incentives can outcompete labor costs in China. They can't. They chose niche products because it's probably easier to get a small company to talk about supply chain issues, than a large one. You can already see the net negative result of tariffs by looking at the prices of food at the grocery store.
Probably the best series on this channel! Always interesting 👍🏽
I'm sure these comments will remain civil.
liberals are cancer i hope trump wins 2020 . I dont even like the guy i just love watching snowflakes melt
@@hamschh ok
Very informative now I know more about tariffs
Countries do not progress because of the governments but inspite of them
All means [America], so yeah not me.
so true hahaha, my country's import/export with china is "only" 4% of the total import/export, and about the same with the US, not very concerned tbh
it would be you too, if costs of production go up for a firm because of the tariff they could pass those costs onto the consumer. All American goods would be more expensive for the whole world and it impacts global economics. Tariffs would lead to a loss of consumer surplus and a loss of producer efficiency. Basically protectionism just for the sake of protectionism and stubbornness is bad for the global economy and it very well could have an impact on you even if you don't realise it
@@Christofion oh I see, didn't think it through.
@@mob_abominator1868 lol no problem bro, international economics is hard to get your head around
America and China are world's biggest economy. It definitely impacted your country in some way.
Even if it's small you will feel the difference eventually.
This was fun, If this continues I would like to see more of diverse view of creators. Not every creator ships a physical thing.
Well tariffs here in this video explained that its effects only to the imported pieces of physical things from China.
@@prahastha1618 True and this video is fine! I'm just saying for the future of the series
The tariffs are paid at the port of entry by whoever is importing or exporting goods into the US. If they raise their prices on their things to recoup the tariff, they won't sell as much stuff, because people will opt for things made in other countries or the US that doesn't have a tariff. When the tariff put on China was 10%, the retailers didn't increase their prices 10%. You can still buy things at the 99 cent store for the same price. There is so much markup on those things that they will eat the tariff.
Politics make innovation crumble, stupid gov. ty
All this means is that companies will get their stuff from other countries like how apple/foxcon is going to India
No that is not what it means, China has the infrastructure, India doesn't (as good as China).
Unfortunately that takes time, until market adjust consumer will suffer in the meantime.
Consig1iere absolutely true but companies will be willing to Invest like how it was before
@@consig1iere294 may be because we did not made anything that not in use so we didn't make ghost city's.
People argues that the tariff would force supply chain to move out of China.
But NOPE, I don't see that happening.
No other country has the scale of producing all the products（tens of thousands from toys to containership from oven to machines） you see，millions of engineers、sufficient amount of electricity for mass production 、capacity of ports--top 10 ports in the world 7 of them in China、excellent traffic infrastructure such as highway network、a single domestic market which can keep the price down.
Yes， The only one that can be competative to China is India but it'll take India years to catch up, after all it took China 40yrs to become the world-factory.
（mobile factories in India is just assembling lines, as you see all the key components of a cellphone are still majorly produced in East Asia）
Vietnam , they are now pretty much close to their full capacity producing textiles and mobiles/printers etc.
What's the point of a tariff if there isn't an affordable local alternative?
So at the end of the day consumers pay for the Tariff.
Yup, pretty much. Or the companies can eat the cost, but eventually it'll get passed down to us. -Ashley
Can you please do one on how the corona virus will affect gadget production?
Very informative, fun to look at and real. I'd love to see more in this series
To folks living outside of the US,
The video is about the US. Being upset that this doesn’t apply to where you are is kind of silly. I’m in Canada and this won’t impact me, but it is still crucially important for me to understand how to avoid the same failures. If you don’t care about that kind of stuff then this video just isn’t for you.
I'm not sure if small countries can benefit from the clash of big ones. I'm from Taiwan. Should I be happy about this?
Who knows what's that song playing in the intro? I like it!
good reporting. please have more of these ... in the making.
If we as Americans keep purchasing products and materials from overseas then those companies that are overseas gets the money. You can't complain when buying cheap products from China and then wanting American companies to succeed.
When did Ashley come back?
I always enjoy Ashley's videos!
They basically all said the tariff needs to be higher...
6:00 I wander how much tariffs added to cost of plastic container they want to sell at $50. I bet (my apologies) in single % digits of price.
Trump: America will win
Xi: China will win
Rest of the world: Damn, we didn't vote for either of you, why our Huawei phone included in the ban? We suffer
That one metal part that he bought was from a local metal fabricator. So that is why it cost him more. Because they only made a one off part. And they did it by hand.
You would be amazed at how many manufacturers there are in the USA that can make things for the same price or in some cases less than overseas...
There is a such thing as US materials as well... not everything comes from China
WOW!! Great informative Video! Helped me understand the what and whys of how Business is impacted by tariffs. Thanks 🙂
do you have to pay the tarrifs if you use American amazon to send something from China to Europe?
If the CEO's pay them selves a little less that would stop the hit to consumers.
AC looking fine bringing all those facts.
Can....I..... make my house out of Brixels?
Jezza Lenko Sure you can...If you are rich enough that is😅
"We have to up our costs, we can't eat that". Said the man who gets paid millions of dollars more than his staff, what he meant was: "We would have to reduce executive salaries or bonuses if we keep the price of our product the same, so we'll pass the costs to the consumer".
I just wish arrogant Americans learned what all means. lol
Krunoslav Stifter well this is an American company doing the reporting. It’s obvious “all” means us Americans.
@@pudgeederek Obvious? Hmm, maybe it is. Maybe I shouldn't expect any higher standards from an American company. I suppose its my fault for assuming such a thing.
Krunoslav Stifter I don’t see Americans crying over being left out of a news report from another country.
Krunoslav Stifter its an american show
Come to America and talk about my country like that
Oh
Do we really NEED
This stuff???
Long answer: no
During real wars, countries can ask their citizens to cut back what they want and focus on what they need. But we’re being asked to make those same decisions to support a pissing contests started by a person who thinks trade defs matter.
Do we really need those tariffs?
I always love your nail designs.
I like this verge segment. I get to learn more about tech and business aligned.
Can't wait to see you come back.
I'd like for you to do more stuff about trading stocks for tech companies
Ah thank you for watching!! -Ashley
It’s a economic law, who pays the tariff depends on who needs the sale more. So for IPhones , for sure consumers will pay for the tariff, but for small start ups who needs customer to buy their products more, they will have to pay
do you think if the American peoples taxes went up, and businesses taxes went down would their prices drop to help us out or would they just bank the extra cash and congratulate themselves on their higher profits? maybe there should be a little give and take in the business profits sector and maybe their customers should not have feel every bump in their road. why did phone prices keep going up pre-tariff?
The completed product is not affected by the tariffs, but the the materials to built it are? That is not enough, we need to have tariffs on the end product for this to work properly, those assembler factories in china are part of the problem.
What? Completed goods arnt tarriffed? Wth? Also $40 for a box?
Hey, There is a place in the Map called Malaysia. They have alot of products at the best quality . All the large manufacturing is made here AMD chips, and itel chips in space was made here.. look up this Country and how they can help. The exhange here is 4 - 1 USD. Its dirt cheap!
Who profits from tariffs? I know it's a tax but where does this tax go?
5:10 *Whispers* "Lil' Bits"
Walmart said due to tariff's it is going to raise prices.
Little bits is a brilliant idea!
Lovin' this series. Hopeing Versus comes back too
Well maybe they should cut taxes instead of getting rid of the tariffs
Ashley is supercharged,fiery in the walkthrough intro like Daenerys in S08E05
They did that to help Apple and all the big consumer electronics makers.
It's "Aluminium".
Dat last quote is so empowering
If Mexico is paying for the wall then I see no reason why Chay-nah doesn't pay for unfair trade practices. I say let's roll the dice,cross our fingers and hope for the best. Ohhhh also while we are still on that issue China should bring back our Jack Bauer ! We know they have him help up in some filthy prison popping himself....
If they wanted to create jobs then the tariff would have been to fully finished products, but thats obviously not their goal but to protect the big companies and the consumers and true trail blazers have to pay the costs. 'Merica!
Love your outfits and insight, Ashley!!
I want more episodes
Excellent video!
I wonder how Buick is gonna do it, some of there cars are built in China and imported here.
Little bits are already horrendously overpriced for what they are, if they go any higher their sales will surely plummet.
I'm seeing the effects, im living the pain of inflation.
Only thing I got out of this video was a product called little bits I'm going to have to buy some for my kids
So tell me is there a tri fold phone that is affordable for the people that are darn near poor or will it be for the rich only as usual
watching this farce is always enjoyful.
Do not blame China Blame Forest Trump
It's okay we all suffer a little for the future greater good.
Well Lg actually built their factory in america due to a tariff which created a lot of jobs so it depends on what companies do
I think the verge is really good becouse it takes complex, harder to understand and break them down in an easily assimilated way to learn, and are overall pretty neutral and unbiased overall, compared to the super biased and corrupted media otherwise witch is a breeze of fresh air, in a world there the media otherwise influence their wievers to their pint of wiew, so thank you the verge for being a beacon in this otherwise bleak world yeah.
Tariffs are NOT beyond entrepreneurs' control. They can make the @#$% anyplace but China!
really liked the videos... just curious why people dont want to see these videos which show the real truth...
A mission with a strong vision
And where does the tarrif money go towards???
60% chance that it goes towards welfare.
India should do what China did with Schenzhen and create a manufacturing zone then there would be competition. You can argue that, right now, Google has a monopoly on phone os, China has a monopoly on manufacturing. Any monopoly is bad for consumers.
Let me teach some simple logic. US buys from China more than China ever buys from US. If both countries put tarrifs on each other, US will be hurted more. Just throwing tarrifs won't increase America's manufacturing capabilities. You also have to give incentives to companies manufacturing in America.
Nishith Joshi not really, the problem is when us buys product from China(vice versa), the gov gets all the tariffs money but we(company and citizen) pay the price.
@@xu5949 I meant American citizens when I said America will be hurted more
Such one-sided explanation!
Yevgeniy Lukomskiy Sorry to hear that the economy doesn’t work the way you wish it does
what's the other side that we are apparently missing?
@@Fals3Agent The other side is the tariffs are not there to let the products to be produce in US but to move the production out of China to other countries like Vietnam or india. Nowadays, you can't live your life without using something "made in China", this will give China too much leverage to influence domestic policy, because US is a democratic country all kinds of people will be angry about the government for not doing business as usual with China because they abuse human rights and suppress freedom of speech. You can see now not only developing nations in Africa and South America do not there to challenge China on human rights even European countries who value human rights higher are reluctant to criticize China.
Chee ze hao but by that logic then why are there no tariffs on the completed products arriving? Tariffs might be the best way to fight against the unfair trade relationship but the way they are being implemented isn’t logical.
@@cheezehao1129 Stop doing business with China because of human right abuse will make China abuse human right even more. So I don't think that's the solution.
Love you Ashley 😊
This is basically why we had the Boston tea party
Somebody wasn't sleeping through History classes. 👍
we must start growing those tiny yellow mangoes at all cost
is this the start of inflation ? I mean your expensive goes up but your salary remains the same.
Please leave a comment
I have no clue. I sure hope not. The federal minimum wage in the U.S hasn't gone up with inflation as is. It wouldn't be great. Especially when you consider our health insurance premiums and the ever increasing cost of rent and homes. I heard a rumor that in San Diego there are U.s. citizens working in San Diego and Living in Tijuana, Mexico because the rent is cheaper.
Our Minimum wage was always supposed to increase with inflation, but really hasn't. Don't get me wrong the U.s. is a great country to live in comparison to many, but there are countries that do better by their citizens Canada, Australia, Iceland, Most of Europe.
In theory this might move production outside China to Indonesia or Phillipines. From republicans this is interesting as tariff could be considered as an indirect TAX by the government..
Economically, China has the bread, but we have the water. Who is going to outlast who
phunnyfill China is getting the water as well, soon they won’t need us
Massive layoffs coming up
They should learn to code.
It's ok, President Trump has already considered the buying power of Americans / American businesses. Most importers in America can afford to pay for these tariffs, as the money would only go to the American government account anyway. American government who would then spend these money on Americans in return.
What an absolute mess!
Thanks for covering this! Been worried about what all the China talks will do to the electronic market. Worried all our cheap gadgets are about to get real expensive
Tariff is good for fighting climate change! Less carbon foot print !
so american makers just need to setup shop in "america town" in china and get better health insurance rates as an added bonus? plus simple access to the russian markets to boot