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> it does seem that I’ll be paying US tariffs for something [from China] that is then exported to me in another country. I'm sure that isn't right - Digikey im
by helsinkiandrew 2y ago
> it does seem that I’ll be paying US tariffs for something [from China] that is then exported to me in another country.
I'm sure that isn't right - Digikey imports and exports from across the world - including existing items with tariffs and duty - effectively their warehouses act like Bonded warehouses - they claim back 99% of Duty and Tariff paid on exported items using Drawback. I don't know the details of the new tariffs but it wouldn't make sense for the US to stop this for reexports.
https://en.wikipedia.org/wiki/Duty_drawback https://en.wikipedia.org/wiki/Duty_drawback
- alibarber 2y agoFrom the page: One way DigiKey helps provide high-quality products at competitive prices is through our Duty Drawback Program, which allows us to recover a portion of the tariffs paid on imported products. However, under this Executive Order, the new 10% duty on all products imported from China and Hong Kong is not eligible for duty drawback programs.
- helsinkiandrew 2y agoThat really is destroying US businesses. DigiKey's size and its amazingly efficient process means a European can order parts made in China via DigiKey and get them next day or the day after, mostly cheaper than from the smaller European suppliers. The US has now effectively added an 'export' tax on DigiKeys business.