Earlier quoted context omitted.
> This headline is misleading because it makes it seem like tariffs are a step function that activate below 85%, which isn't true. > The formula is a simple, linear equation: tariffs = 0.25 * MSRP * (percent foreign content - 15) Um... unless I'm missing something, agree it's not a if/then rule, but in practice, that's exactly how the formula works? 84% domestic = 16% foreign = 0.25 * MSRP * (16-15) = 25% tariff on 1…
Your parent's point is that it does not suddenly apply to the full value when exceeding 15% foreign content.
Any vehicle at 85% is exempt
Any vehicle at 84.999% or less pays a tarrif
That tarrif may be 1 cent or $100,000, the headline doesn't say anything about that.
Given the need for transparency though it would be best if every item bought in america highlights the exact cost of the tarrif, same as it highlights sales tax. Indeed America is fairly unique in advertising pre tax prices (buy a can of coke for $1, it comes to $1.07 at the store), it would make sense if prices were also advertised pre tarrif too, in terms of transparency. I wonder how the administration could encourage that.