trump tariffs

Trump cuts tariff on UK cars; American carmakers not happy about it

Cars, trump tariffs / 9u50fv / May 9, 2025

The British car industry got a big break from US President Donald Trump yesterday afternoon. Trump and UK Prime Minister Kier Starmer have agreed to a bilateral trade agreement that cuts tariffs on a range of imports from the UK, including pharmaceuticals, aluminum and steel, and cars.

Now, the first 100,000 cars that come to the US from the UK will only be subject to a 10 percent tariff rather than the 27.5 percent they have been under since the start of this trade war in April.

“The car industry is vital to the UK’s economic prosperity, sustaining 250,000 jobs,” said Jaguar Land Rover CEO Adrian Mardell. “We warmly welcome this deal which secures greater certainty for our sector and the communities it supports. We would like to thank the UK and US Governments for agreeing this deal at pace and look forward to continued engagement over the coming months,” Mardell said.

As it turns out, 100,000 is almost as many cars as the UK exported to the US last year—about 102,000 last year. Not every car that wears a British brand’s name is made there, but Aston Martin, Bentley, Jaguar Land Rover, McLaren, Mini, and Rolls-Royce all manufacture cars in the UK.

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Chips aren’t improving like they used to, and it’s killing game console price cuts

console gaming, Game prices, gaming, Moore's Law, Tech, trump tariffs / Beth Washington / May 4, 2025

Consider the PlayStation 2. Not all of the PS2 Slim’s streamlining came from chip improvements—it also shed a full-sized 3.5-inch hard drive bay and a little-used IEEE 1394 port, and initially required an external power brick. But shrinking and consolidating the console’s CPU, GPU, memory, and other components took the console from its original design in 2000, to the Slim in 2004, to an even lighter and lower-power version of the Slim that returned to using an internal power supply without increasing the size of the console at all.

Over that same span, the console’s price dropped frequently and significantly, from $299 at launch to just $129 by 2006 (the price was lowered again to $99 in 2009, deep into the PS3 era).

Or look at Microsoft’s Xbox 360. Its external design didn’t change as much over the years—the mid-generation “slim” refresh was actually only a little smaller than the original. But between late 2005 and early 2010, the CPU, GPU, and the GPU’s high-speed eDRAM memory chip went from being built on a 90 nm process, to 80 nm, to 65 nm, and finally to a single 45 nm chip that combined the CPU and GPU into one.

Over that time, the system’s power supply fell from 203 W to 133 W, and the base price fell from $300 to $200. The mid-generation 65nm refresh also substantially fixed the early consoles’ endemic “red ring of death” issue, which was caused in part by the heat that the older, larger chips generated.

As you can see when comparing these various consoles’ external and internal design revisions, shrinking the chips had a cascade of other beneficial and cost-lowering effects: smaller power supplies, smaller enclosures that use less metal and plastic, smaller heatsinks and cooling assemblies, and smaller and less complicated motherboard designs.

Sony’s original PS2 on the left, and the PS2 Slim revision on the right. Sony jettisoned a few things to make the console smaller, but chip improvements were also instrumental. Credit: Evan Amos

A slowdown of that progression was already evident when we hit the PlayStation 4/Xbox One/Nintendo Switch generation, but technological improvements and pricing reductions still followed familiar patterns. Both the mid-generation PS4 Slim and Xbox One S used a 16 nm processor instead of the original consoles’ 28 nm version, and each also had its price cut by $100 over its lifetime (comparing the Kinect-less Xbox One variant, and excluding the digital-only $249 Xbox One). The Switch’s single die shrink, from 20nm to 16nm, didn’t come with a price cut, but it did improve battery life and help to enable the cheaper Switch Lite variant.

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Trump backs down a bit on auto industry tariffs—but only a bit

Cars, trump tariffs / Kelly Newman / April 29, 2025

President Donald Trump is set to ease up slightly on the automotive industry this week. After being warned that his trade war will result in hiked prices and fewer vehicles being built, government officials over the past two days have signaled that Trump will sign an executive order today that will mitigate some of the pain the 25 percent import tariffs will inflict.

Trump’s approach to tariffs has been nothing if not inconsistent. In this case, the White House is not dropping the 25 percent tariff on all imported vehicles, but the other tariffs imposed by the Trump administration—like the 25 percent tariff on steel and aluminum that went into effect in February—won’t stack up on top.

The potential for multiple tariffs to have an additive effect on prices could have seen new car prices soar in the coming weeks; now, they are likely to just rise a lot instead. According to The Wall Street Journal, the move will be retroactive, and automakers who have (for example) paid aluminum or steel tariffs on top of the car import tariff can seek a refund for the former.

A separate 25 percent tariff on imported car parts is set to go into effect on Saturday. These are still planned to go into effect, but importers will be able to apply for small reimbursements—up to 3.75 percent of the value of a US-made car for a year, then 2.5 percent of the car’s value for the second year.

How easy the government will make the reimbursement process, and where that money will come from, has yet to be made clear.

Trump backs down a bit on auto industry tariffs—but only a bit Read More »

Framework “temporarily pausing” some laptop sales because of new tariffs

AMD, framework, framework laptop 13, intel, tariffs, Tech, trump tariffs / Kelly Newman / April 8, 2025

Framework, the designers and sellers of the modular and repairable Framework Laptop 13 and other products, announced today that it would be “temporarily pausing US sales” on some of its laptop configurations as a result of new tariffs put on Taiwanese imports by the Trump administration. The affected models will be removed from Framework’s online store for now, and there’s no word on when buyers can expect them to come back.

“We priced our laptops when tariffs on imports from Taiwan were 0 percent,” the company responded to a post asking why it was pausing sales. “At a 10 percent tariff, we would have to sell the lowest-end SKUs at a loss.”

“Other consumer goods makers have performed the same calculations and taken the same actions, though most have not been open about it,” Framework said. Nintendo also paused US preorders for its upcoming Switch 2 console last week after the tariffs were announced.

For right now, Framework’s sales pause affects at least two specific laptop configurations: the Intel Core Ultra 5 125H and AMD Ryzen 5 7640U versions of the Framework Laptop 13. As of April 1, Framework was selling pre-built versions of those laptops for $999 and $899, respectively. Without those options, the cheapest versions of those laptops start at $1,399 and $1,499.

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Not just Switch 2: ESA warns Trump’s tariffs will hurt the entire game industry

Entertainment Software Association, gaming, trump tariffs / Kelly Newman / April 5, 2025

This morning’s announcement that Nintendo is delaying US preorders for the Switch 2 immediately increased the salience of President Trump’s proposed wide-reaching import tariffs for millions of American Nintendo fans. Additionally, the Entertainment Software Association—a lobbying group that represents the game industry’s interests in Washington—is warning that the effects of Trump’s tariffs on the gaming world won’t stop with Nintendo.

“There are so many devices we play video games on,” ESA senior vice president Aubrey Quinn said in an interview with IGN just as Nintendo’s preorder delay news broke. “There are other consoles… VR headsets, our smartphones, people who love PC games; if we think it’s just the Switch, then we aren’t taking it seriously.

“This is company-agnostic, this is an entire industry,” she continued. “There’s going to be an impact on the entire industry.”

While Trump’s tariff proposal includes a 10 percent tax on imports from pretty much every country, it also includes a 46 percent tariff on Vietnam and a 54 percent total tariff on China, the two countries where most console hardware is produced. Quinn told IGN that it’s “hard to imagine a world where tariffs like these don’t impact pricing” for those consoles.

More than that, though, Quinn warns that massive tariffs would tamp down overall consumer spending, which would have knock-on effects for game industry revenues, employment, and research and development investment.

“Video game consoles are sold under tight margins in order to reduce the barrier to entry for consumers,” the ESA notes in its issue page on tariffs. “Tariffs mean that the additional costs would be passed along to consumers, resulting in a ripple effect of harm for the industry and the jobs it generates and supports.

Not just a foreign problem

The negative impacts wouldn’t be limited to foreign companies like Nintendo, Quinn warned, because “even American-based companies, they’re getting products that need to cross into American borders to make those consoles, to make those games. And so there’s going to be a real impact regardless of company.”

Not just Switch 2: ESA warns Trump’s tariffs will hurt the entire game industry Read More »

Trump on car tariffs: “I couldn’t care less if they raise prices”

Cars, trump tariffs / Kelly Newman / March 31, 2025

However, those claims were directly contradicted by Trump this weekend.

“No, I never said that. I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Trump told an NBC interviewer.

“The message is congratulations, if you make your car in the United States, you’re going to make a lot of money. If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff,” Trump said, apparently unaware that even the Teslas built by his benefactor Elon Musk in Texas and California contain a significant percentage of parts made in Mexico and Canada, parts that will cost 25 percent more as of next month.

Trump also told NBC that his tariffs will be permanent, although in the past we have seen the president flip-flop on such matters. Analysts are still trying to reach consensus on how much the Trump tariff will add to the prices of domestic and imported cars, but expect prices to rise by thousands of dollars as automakers and dealerships try to preserve some of their profit margins.

Trump on car tariffs: “I couldn’t care less if they raise prices” Read More »