3 ms·
What you are missing is that they can't import the product for $500. They have to sell it to the "USA" for 1000 and pay 100 in tariffs. They can't "pocket" the
by csomar 2y ago
What you are missing is that they can't import the product for $500. They have to sell it to the "USA" for 1000 and pay 100 in tariffs. They can't "pocket" the profit in the USA. Look up https://en.wikipedia.org/wiki/Transfer_pricing https://en.wikipedia.org/wiki/Transfer_pricing