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Acer To Raise US Laptop Prices 10% After Tariffs (telegraph.co.uk) 311

Acer will raise laptop prices in the United States by 10% next month due to Trump administration tariffs on Chinese imports, CEO Jason Chen said. "We will have to adjust the end user price to reflect the tariff," Chen said. "We think 10 percent probably will be the default price increase because of the import tax."

The Taiwan-based company, the fifth-largest computer seller in the U.S. market behind HP, Dell, Lenovo and Apple, could add hundreds of dollars to its high-end laptops that cost up to $3,700. Chen said Acer is exploring manufacturing options outside China, including possible U.S. production. The company has already moved desktop computer assembly out of China following earlier 25% tariffs during Trump's first term. The 10% tariff imposed this month affects nearly 80% of U.S. laptop imports from China.

Acer To Raise US Laptop Prices 10% After Tariffs

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  • by Registered Coward v2 ( 447531 ) on Tuesday February 18, 2025 @09:55AM (#65175767)
    No matter how you spin it, tariffs are a deadweight cost and a tax on consumers. They have a place, but are a surgical, not blunt weapons. One challenge with getting them to drive domestic production is uncertainty as to how long the last; if they get removed all of a sudden that large investment in manufacturing is no longer competitive. OTOH, if the stay in place like the famous Chicken Tax, consumers pay more than needed for goods, light trucks in this case.

    In addition, they invite retaliation, which hurts domestic exporters.

    • Re: (Score:2, Funny)

      You are wrong. Orange jesus says the other country pays it.

    • by mjwx ( 966435 ) on Tuesday February 18, 2025 @10:16AM (#65175845)
      Well yes, tariffs are just another form of taxation and ultimately one paid for by the consumer.

      One minor point of order... this isn't hidden... it's there in plain sight.

      This article highlights a big downside of punitive taxes, companies will take the piss and raise prices because you'll blame the tax. For years the global car industry got away with charging Australians more for new cars because they knew Australians would blame tax, despite the fact it would be cheaper to buy a BMW from the UK paying 20% VAT in the UK, ship it to Australia paying 10% GST and modify it to meet Australian Design Rules than it would be to buy one from BMW Australia... if only it were legal to do that of course (erm... it isn't in case you missed obvious sarcasm).... But Australians to this day still blame tax and BMW still get away with adding a huge mark up on the base price.
      • Well yes, tariffs are just another form of taxation and ultimately one paid for by the consumer. One minor point of order... this isn't hidden... it's there in plain sight. This article highlights a big downside of punitive taxes, companies will take the piss and raise prices because you'll blame the tax.

        Good point. Prices are stick as well when raised since it shows consumers will pay the higher price so once the tariff is gone, prices stay up, as long as sales and profit are on target at the higher price.

      • by kenh ( 9056 )

        it would be cheaper to buy a BMW from the UK paying 20% VAT in the UK, ship it to Australia paying 10% GST and modify it to meet Australian Design Rules than it would be to buy one from BMW Australia...

        If buying a BMW for export in the UK, do you still pay the VAT? When I as an American buy goods to bring back home with me, I can apply for a VAT refund.

        The biggest issue in this scenario is that Australia is an island, and the price of anything not manufactured or grown on the island costs more than it does off the island. BMW doesn't build automobiles in Australia [0], so they are more expensive than they otherwise would be if they were domestically produced. We have a BMW factory in Spartanburg, so certa

    • Re: (Score:2, Insightful)

      by DarkOx ( 621550 )

      For the sake of argument, what are income taxes then?

      I would rather pay taxes on behavior I can control, like deciding if I want to a new PC or to continue using my old one than pay more in taxes on earnings.

      Taxing the import especially of finished consumer products is a better policy than the alternative. It makes things the lower rungs of our society struggle with most relatively cheaper. That would not be helpful but for the fact that Constitutionally we can't tax exports, yeah we can play dumb games w

      • by timeOday ( 582209 ) on Tuesday February 18, 2025 @10:42AM (#65175941)

        Taxing the import especially of finished consumer products is a better policy than the alternative. It makes things the lower rungs of our society struggle with most relatively cheaper.

        Seems dubious. Poor people buy lots of imported things from China because the goods are cheap. And cutting income tax to justify tariffs as an alternative form of taxes makes no sense, since poor people don't pay income taxes.

      • by fluffernutter ( 1411889 ) on Tuesday February 18, 2025 @10:42AM (#65175947)

        Finally it creates more opportunity to manufacture and do final assembly of things like laptops domestically.

        That's a dream that isn't going to happen. For one thing, building the infrastructure for that will take more than four years, by which time Trump will be out. For another thing, no company is going to spend billions of dollars building a factory in the US knowing everyone working in that factory is going to want American wages rather than Chinese or Mexican. On the other hand, if they are able to hire Americans at those wages or they are able to avoid hiring Americans through automation then it isn't helping anyone anyway. There is no way for Americans to win here.

      • Planet Money (Score:2, Interesting)

        by JBMcB ( 73720 )

        Years ago Planet Money polled a dozen or so economists from across the political spectrum to see what policies they would all agree on. That is, policies everyone agrees would help the most people.

        Eliminating income tax was one of the proposals, replacing it with a mix of tariffs, national sales or VAT tax, and wealth taxes.

        So was eliminating the mortgage interest deduction, as well as most tax deductions, and eliminating corporate taxes altogether.

        The point of the piece is how incredibly unpopular most of

        • I would love to see this study.

          eliminating corporate taxes altogether

          I crafted a meme just for this statement. https://imgflip.com/i/9kn5do [imgflip.com]

        • Re: (Score:3, Insightful)

          What you want, economically, are taxes that cause the least deadweight loss, because all things being equal, you get more revenue out of them for a given amount of damage to the economy. Whether you want more government revenue, or smaller tax burden, everyone should be able to agree on this. Nobody benefits from a tax that causes larger damage to the economy and meanwhile raises less money.

          Most taxes cause deadweight loss...the addition of the tax causes prices to rise, so some increment of commerce that o
          • by dgatwood ( 11270 )

            Put simply, the taxes that have zero deadweight loss are taxes on economic rents. The classic and still relevant example is money paid to acquire or lease land, which is completely unproductive rent. No matter how much rent is paid for land, it won't cause the production of more land, so the rent is nonproductive (by definition). If you tax the rent, it drops the price of land, and the total cost to acquire land doesn't change at all, the tax just causes some of the rent to go to the government. In fact, there is an economic impact and that's in the reduction of speculative loss, because rents are typically associated with speculative loss and reducing rents actually helps the economy too.

            That one is actually risky, because sellers or people leasing out land, absent any sort of rent control, are likely to increase the asking price rather quickly to ensure that they get enough money out of it to pay for property tax and other costs. This, in turn, will drive up the cost of housing, which makes it potentially a big negative impact on the working poor.

            Capital gains taxes don't have that problem. You're not going to choose not to sell stocks when the value slides, so it isn't going to stop the

      • You can control eating?

        Do you know where a hell of a lot of produce comes from when you can't grow it in North America?

        Good job missing the forest because this one particular tree looks special.

      • by MachineShedFred ( 621896 ) on Tuesday February 18, 2025 @11:41AM (#65176227) Journal

        Pretend you are running a business that manufactures laptops for a second.

        Here is the choice you are being presented with:

        1. continue with the contract agreement you already have with a producer of your product and raise prices;
        2. spend billions to build a factory in the US and staff it with US labor at far more expense than almost anywhere else in the world, so you can raise your prices anyway and be less competitive, and in 2 years when the Congress flips and your factory isn't even done yet, watch Congress toss this bullshit on the trash heap where it belongs and justify to your shareholders why you're cancelling a billion dollar factory you don't need.

        Gee, which do you think they're going to choose?

        Welcome to a global economy, and trying to apply economic theory last used in the 1890s. Airplanes and giant cargo vessels that can cross an ocean in a week are a thing. There's a reason why no G20 economy is based on tariffs, but it's clearly a mystery to you as to why.

      • by rsilvergun ( 571051 ) on Tuesday February 18, 2025 @12:18PM (#65176379)
        You cannot control the vast majority of the consumption you do. You still need food, you need to buy a car and it needs to be built with materials, you need a house and same deal it's got to get built with materials, etc etc. As a regular consumer you would be surprised how little control you have over your purchases.

        Very wealthy people on the other hand have control over their expenditures because the majority of their wealth doesn't have to be spent keeping themselves alive. They can spend it on investments or buying a property and renting it back to you at inflated prices.

        This is why you will always see extremely wealthy people trying to convince you that sales tax is a good thing and income tax is a bad thing. It's because you pay more sales tax and less income tax, at least in a properly functioning progressive taxation system. The United States system definitely has issues but we still have the top 1% paying I think about 40% of income tax if only because they just have so much money that there's a limit to how much overseas offshore accounts can hide.

        It's a trick. It's a trick to make you pay more to make the country function. If you don't want to live in a functioning country then I guess there's that but you're not going to have clean air and water or medicine or reliable access to food.
    • by dbialac ( 320955 )
      Tariffs, done properly, incentivize people to buy local, in this case local being the US. This creates jobs in the US as, as stated in the article snippet, foreign manufacturers move production to the US to remain within the marketplace. This also creates a loop where more US dollars are being spent here and a lot of the currency remains in the US and is not sent overseas to less friendly countries such as China. Free trade agreements between countries that have similar value for the same product make sense
      • by caseih ( 160668 ) on Tuesday February 18, 2025 @11:00AM (#65176023)

        Yes they can incentivize people to buy local. But the fact remains, tariffs raise prices, which for consumers is inflation. If local goods were priced competitively to the imports, people would already buy them. With the tariffs on, the imported good gets expensive, but the domestic good we want to incentivize is already expensive, and won't get cheaper just because of the tariff. Consumers end up paying more than before. I'd like to think that there still could be a benefit in that the money stays in the local economy and create local jobs, but the cynic in me says that increased prices simply means the richest business owners just get a bit richer.

      • Tariffs, done properly, incentivize people to buy local, in this case local being the US.

        Recent tariffs imposed on Canada by the US have certainly incentivized us Canadians to buy local!

        Admittedly, some of that is motivated by Trusk's "51st state" bullshit - but a lot of it is motivated by tariffs, some of which aren't even in effect yet. So I think it's necessary to analyze tariffs in the context of both other political factors, and consumer behaviours in the countries on the receiving end of those tariffs.

      • Did you sleep through history class? If not, you might remember what preceded capitalism in 16th and 18th century, i.e. mercantilism. Adam Smith’s Wealth of Nations criticized it. Mercantilism tries to maximize a country's wealth with tariffs, increased exports and strong government control. The result was economic inactivity and international conflicts. Free trade and international cooperation is considered better today.
        • by dbialac ( 320955 )
          That doesn't mean Adam Smith was right. Capitalism only works if the investors and leaders have a moral conscience. Our current CEO/investor class lack this and readily go to the cheapest place to manufacture goods, the local population be damned. IMO, somewhere between mercantilism and capitalism is a better approach. It cuts off cheap labor and allows competition between locals. Having a degree of open trade governed by tariffs set to equalize prices makes sense.
      • Yeah let me just walk out to the fields and pick some locally grown coffee beans or avocados, in the northeast.

      • That's all great if you're dealing with spherical cows in a vacuum, to reference a physics joke. We're not.

        What business is going to build a billion dollar factory and staff it with US labor at US labor prices when they can just raise their prices and wait out the administration?

        Oops, none of the tariff hayseeds ever thought of that, did they?

      • Were it so simple.

        Tariffs can be argued as effective in surgical cases where domestic capacity exists.
        Otherwise, you're merely harming both parties. You're hurting your own people by increasing the costs of goods, and you're hurting the foreign producer by reducing demand for their goods.

        There has never been a good argument for blanket tariffs.
        Dumb shit like that is what led to the eventual collapse of the British Empire, and it will likewise lead the collapse of support for this administration.
    • by caseih ( 160668 )

      I was highly disappointed in Canada and Mexico's suggestion of retaliatory tariffs last month. Retaliatory tariffs have to be the stupidest response to tariffs possible by countries affected by them. Retaliatory tariffs hurt a country's own citizens and businesses before they hurt the targeted country, especially when it's the US. Besides that, refusing to retaliate takes some of the wind out trump's bluster.

      • I was highly disappointed in Canada and Mexico's suggestion of retaliatory tariffs last month. Retaliatory tariffs have to be the stupidest response to tariffs possible by countries affected by them. Retaliatory tariffs hurt a country's own citizens and businesses before they hurt the targeted country, especially when it's the US. Besides that, refusing to retaliate takes some of the wind out trump's bluster.

        The purpose woukld be toi bring the US to end their tariffs, especially if they put export tariffs on goods such as steel, aluminum, and lumber; all of which are used extensively by US companies. They could also establish export limits to force companies to find higher cost replacements.

        • by caseih ( 160668 )

          But given the size of the US economy and the size of Canada's economy, such retaliatory tariffs would hurt Canada far more than the US. Thus they would not serve the purpose you state.

          • Canada has the world to sell their good to. Europe has already said they want the aluminum.
          • But given the size of the US economy and the size of Canada's economy, such retaliatory tariffs would hurt Canada far more than the US. Thus they would not serve the purpose you state.

            They could set targets that balance the impact on Canada’s economy with the impact on the US, and also develop export markets for the excess capacity. Cutting oil exports, for example , could severely impact fuel availability and price in the US, and hit US consumers directly at the pump where the impact would be visible

            Trade wars are a bad thing because both sides suffer, but Canada can explore options outside of US sales, and other countries may be interested to stick it to Trump and the US by exte

      • by MachineShedFred ( 621896 ) on Tuesday February 18, 2025 @11:52AM (#65176275) Journal

        I'm sure that Canada and Mexico are just really broken up about your disappointment in them.

        Anyone with a clue knew that declaring tariffs would start a trade war. Retaliatory tariffs are that trade war.

        Don't ask questions that only have answers you don't like, and then get upset at the answer.

        By the way, remember that Trump declared those tariffs saying that whoever negotiated our trade agreements with them is stupid and had no idea what they were doing. And then remember IT WAS HIM IN HIS FIRST TERM.

      • Unlike the USA, Canada isn't going to be stupid about tariffs. For example, maybe a tariff on USA wine and liquor. Absolutely minimal harm to Canadian consumers, because we can get stuff just as good from other places.

        We already get fruit and veg from around the world, dropping some stuff grown in the USA isn't going to make much difference.

        Just because the USA decided to use blanket tariffs doesn't mean everyone else has to play the same incredibly stupid game. Unlike the USA, we will likely listen to e

    • I'm old enough to remember the Trumpists around here saying that the tariffs were "just a negotiating tactic" and other complete bullshit they either heard from excuse-making propagandists or just made up out of whole cloth to suppress the easily observed reality being presented to them.

      Enjoy spending more to get less, because that's what you fucking idiots voted for. Hopefully you'll start believing them when they tell you what they're going to do now, and stop dragging the rest of us into your stupid, wi

      • Yea, you can find my sympathy between shit and syphilis in the dictionary for the farmers who suddenly have grain sitting in storage because no one but USAID bought it, the Arab Americans who voted for Trump and now regret it, etc. He told you what he was and you voted for him, now you get to feel the pain. All of a sudden red states are saying, wait a minute, that will hurt us; and it’s too late to stop Trump.
  • Modern factories barely employ anyone unless they can use slave labor. And we aren't quite there yet. Also we don't quite allow companies to poison groundwater. At least not near major cities. Yet.

    On the other hand the tariffs are costing American jobs. The steel and aluminum tariffs especially hit hard. Steal and aluminum don't require a lot of employees so we are not really protecting jobs. On the other hand there's a ton of employees who have jobs that take steel and aluminum and turn them into somet
    • by dbialac ( 320955 )

      he's gotten so many bribes

      How do you bribe a billionaire?

      • By giving him the love and adoration that his father never gave him.

        And by promising they won't lose their billions.

      • With the prospect of them being a bigger billionaire?

      • How do you bribe a billionaire?

        You start by recognizing that there is no limit to the greed of these billionaires. Just because they have tremendous amounts of wealth does not mean that they don't want to acquire more. In fact, the opposite.

      • Are you fucking kidding?

        Do you think someone becomes a billionaire by not wanting more?
        Fucking hell, did you give yourself a lobotomy, or is there some chemical you imbibe in that so thoroughly shuts down the critical thinking parts of your brain?
      • Wrong question.

        You should be asking: How do you bribe an over-leveraged real estate "billionaire" who owes a half-billion in fines and fees to the State of New York?

        Answer: quite easily if you have a shitload of money. Hey wait, don't you think that might be why Musk is talking to the press in the Oval Office more than Trump is these days?

    • On the other hand the tariffs are costing American jobs. The steel and aluminum tariffs especially hit hard. Steal and aluminum don't require a lot of employees so we are not really protecting jobs. On the other hand there's a ton of employees who have jobs that take steel and aluminum and turn them into something.

      Indeed.

      I read a very insightful essay a while ago that pointed out how economic development around the world closely tracks the historical development of industry.

      When the industrial revolution started, what goods did it start with? Textiles. As developing nations pull themselves out of subsistence farming lifestyles, what sort of factories do they start with? Textiles.

      From textiles, what comes next? Iron and steel, heavy industry that requires little finesse or highly educated workers.

      And so on.

  • Are the tariffs assessed on retail price or wholesale ?
    • Selling/Retail price. That is what is on the form for importers.
      • It's not the price paid by the importer? There's no way importers could know the ultimate retail price, that's determined later by the retailer and fluctuates with demand.
      • They might dictate the MSRP or minimum advertised pricing rules, but that's not the price Acer sells them to retail chains for. The declared value on an import form is not a retail price. But they have to justify the declared value, so the wholesale price does that fine.

        They might have/create a US subsidiary for direct sales, so they sell to their subsidiary wholesale and the tariff only affects that price. But they can't make that wholesale price artificially low, I'm sure. I don't know the exact rules

  • Great depression (Score:5, Insightful)

    by fluffernutter ( 1411889 ) on Tuesday February 18, 2025 @10:25AM (#65175875)
    Get ready for the massive inflation Americans. Don't complain if you voted for Trump or didn't vote at all.
    • You seem deeply confused. Freedom of speech does mean the ability to complain about Trump. It is also freedom to lie or deceive, although that may be actionable for other reasons, apparently unless you're Trump.
    • I'm tired of hearing about how people who voted for Trump had good reasons for doing so. Everybody who voted for him is culpable for the coming economic and health calamities.

      • Not to mention the upcoming wars he is trying to stoke under the guise of trying to help. Attempting to kick Palestinians out of their sacred land to turn it into a commercial district is a sure way to stoke fury. Just one example.
        • by caseih ( 160668 )

          Yes lets call it what it is. Ethnic cleansing so he can build a trump resort for Russian oligarchs to come visit.

      • by MightyMartian ( 840721 ) on Tuesday February 18, 2025 @10:38AM (#65175927) Journal

        Up here in Canada we're trying to figure out how to disentangle from the United States, and it looks like Europe is interested as well.

        Which is part of the reason, I'm sure, that Trump wants to annex us. The other being the US is so moronic and self-destructive in its water use that he imagines there's a big tap he can turn on north of the 49th parallel.

        You see, Trump is a fucking moron, and so are his supporters... except the evil ones who are either religious nuts who want to kill all the queer people and enslave the women for their uteruses, and the bazillionaries who intend to become America's new feudal lords.

        Quite a country you got there.

        • The reason Trump wants to annex Canada is because when American workers realize they are being expected to work for even smaller wages as prices increase, Canada is going to look like a dream country unless he can make it just as bad. Why do you think he is pushing for Canada to have more security along the border? Canadian security is to prevent things from coming into Canada, not to prevent (drugs) from going to the US. Those things Canada will be preventing from coming in are Americans.
          • by caseih ( 160668 )

            Honestly he just wants to be king over more people. And he has a grudge against Trudeau because Trudeau didn't immediately bow down to him and also outmaneuvered him on the first round of tariffs. So he can either take over Canada and rule directly, or be de facto ruler by destroying Canada's economy and forcing the Canadian government to do whatever he asks of them.

            Funny how his loyal supporters can see no contradictions in what he says. He says he wants to stop the flow of drugs into the US, and make Ca

        • by caseih ( 160668 )

          I struggle with people saying trump is a "moron." On the one hand when we resort to name calling, we descend to his level (which is what he wants). On the other hand, trump is extremely ignorant of how and why most things work (or have worked in the past), but he has a lot of people that surround him who have been bought and paid for and make his most outlandish and outrageous thoughts and utterances reality. Trump never says anything that is a joke. He's deadly serious, and his people make it happen, leg

          • He knows the tariffs aren't warranted and the effects they will have on them and us.

            I think you are wrong about this. Trump is the ultimate know-nothing person. In his mind "facts" are what he thinks of the world. He has no interest in objective reality.

            He neither knows nor cares about the effects of the tariffs, except as the affect his popularity among the MAGA crowd.

          • As you mention, it seems petty and stupid to just call the dude a moron... but fuck, he really does have an IQ of potato.
        • Up here in Canada we're trying to figure out how to disentangle from the United States, and it looks like Europe is interested as well.

          I SO want us to join the EU! Also, this is a wake-up call to us to get our shit together on the military front.

          Quite a country you got there.

          Yeah, but in some sense we might be considered enablers. We put way too many of our eggs in the American basket, while ignoring the significant differences in outlook that should have had us forming stronger ties with, say, Scandinavia over the last six decades or so. It's not as though what's happening in the US wasn't both predictable, and predicted by some of us.

          BTW, has anyone here considered t

      • An easy solution to this is to stop bringing it up, and to stop doomscrolling before bed.

        • An easy solution to this is to stop bringing it up, and to stop doomscrolling before bed.

          It would be nice if the coming economic and health calamiities could be solved that easily, but I fear that is not so.

      • I'm tired of hearing about how people who voted for Trump had good reasons for doing so. Everybody who voted for him is culpable for the coming economic and health calamities.

        As much as I despise Trusk and the gutless boot-licking Republicans who know better but still enable them - see what I did there? - I also have some sympathy for some Trump voters.

        People got sick of elites having so much power and money, yet the Democrats adopted and repeatedly doubled down on neo-Liberalism. If the Dems had nominated Bernie instead of Hilary way back when, there's a very good chance we wouldn't be caught up in the swirling shitstorm that is the Trusk presidency.

        • Yes because Bernie Sanders has done so well. Could it be that you can't fight corruption by electing people who are more corrupt and couldn't care less about you? The fact that America did not realize this makes me sadder for you than I was before.
  • by Malggi ( 791997 ) on Tuesday February 18, 2025 @10:48AM (#65175975)
    This is too bad. I have an Acer 714 Chromebook that is a great and affordable day-to-day laptop. It has a Linux virtual machine that is Debian compatible and handles anything I throw at it. Whenever friends ask what's a cheap way for their kid to learn about Linux I always recommend a Chromebook. It's really easy to save and revert the Linux VM's, and if the kids screw something up they can always fall back to the native ChromeOS. It's a shame to see this option become less affordable.
  • A consequence of the tariffs is that different vendors have now a justification to increase their prices even the tariffs do not affect them directly or at all: they are for-profit organizations, after all. Expect similar moves from many other vendors.

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