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It seems to be about a tariff rebate on imported parts.


Right but presumably 85% of the parts aren't imported? So while it is a benefit, it is a slightly bizarre one?

Would be nice to see a technical definition for how the % imported is worked out.


> Right but presumably 85% of the parts aren't imported?

85% of parts != 85% of cost

The rules for calculating what percentage of a vehicle is domestic or foreign made are obscure. It's not clear what rules they're going to be using for this tariff exemption yet.

It could be possible that the 15% foreign content of a car could make up 30% of the cost of goods sold, for example. If the parts come from China they could have a 125% or higher tariff applied, pushing the share of BOM cost even higher.




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