5 ms·

Hang on are tarriffs not effective on date of purchase? I'm not American but it seems madness to apply them at any other time as then no one knows what will act

Hang on are tarriffs not effective on date of purchase? I'm not American but it seems madness to apply them at any other time as then no one knows what will actually need paid if you've someone like Trump changing them frequently.

Eddy_Viscosity2 1y ago
The infrastructure for handling all the tarrif payments and rebates etc simply can't change as fast as these announcements and as a result there will be a whole mass of incorrect charges being applied or not applied that could takes years to sort through. The chaos is the point, or so it would seem.
nikanj 1y ago
They are effective on the day of passing customs to the US
Aurornis 1y ago
Applied at time of passing through customs. More typical policy would give 90 days notice so businesses could plan ahead. This policy was implemented far too fast with far too high of numbers and now it’s also changing rapidly. It doesn’t make sense. > I'm not American but it seems madness to apply them at any other time I’m American and I fully agree it’s madness. This administration clearly doesn’t understand or even care how businesses work. They just thought this was going to be a chest-thumping bargaining chip that caused other countries to come begging at the negotiation table. It’s not working and now they’re panicking. They don’t want to look weak by backing down so we’re suffering.
- thfuran 1y ago
  Trump has been spouting the same shit about trade deficits and the US getting ripped off for several decades. I think he legitimately believes high tariffs are a good idea to "fix" trade deficits.
  - erkt 1y ago
    It’s not about trade deficits-it’s about becoming an independent manufacturer again. Whether or not anyone international buys what we make is secondary. Wealth is disproportionately allocated to those that benefit from globalization but the vast majority of Americans are hurting from it, even if a OLED TV costs nickels.
    - goosedragons 1y ago
      How do these tariffs help the vast majority of Americans? Maybe in a half a decade-decade time they can get a job in some factory as a tech??? Except there's so much uncertainty and so much tariffs even on raw material that it doesn't even make sense from that perspective. Raising prices on everything is not going to help the majority of Americans. Taxing the rich might have but half the rationale for these tariffs is tax cuts for the rich. There is no plan or logic to this.
      - InDubioProRubio 1y ago
        Was there a plan and logic to outsourcing those jobs and leaving half the country to fend for itself and beg for handouts though?
        goosedragons 1y ago
        Yes, cheaper goods and more profits duh. If Walmart and others can pay as low as possible wages and shift burden onto the state and it's legal they'll do it. And they did.
      - c_o_n_v_e_x 1y ago
        There's a lot more to manufacturing than "just" being a line assembly worker. The factories have to be designed and built. This includes all of the manufacturing processes, equipment, tooling, automation, etc. All of which are done by reasonably paid, middle class engineers and trades. Then you have all the 2nd order businesses that get stimulated. Energy must be provided. Mines, mills, refineries, etc. to make the raw materials. The packaging for the end products. Logistics for supplies and end products. All of the value above used to be in the US but has been captured overseas for decades now.
- Animats 1y ago
  Right. The normal way this works is that when you buy something to be imported into the US, you compute the tariffs and post a "customs bond" with CBP at the same time you pay for the product. When the shipment arrives in the US, the customs bond is used to pay the tariff, and the shipment is released by CBP. Shipping companies such as DHL integrate this into their systems so the end user doesn't have to deal with it directly. To the purchaser, it looks like tariffs are paid when the product is ordered. That's the happy path, taken by most imports. But when tariffs change faster than it takes to get the shipment from source to destination, the bond won't be for the right amount. You then enter the wonderful world of "insufficient bonds". Here's "Understanding Insufficient Customs Bonds in Nine Easy Steps", which outlines the process and tries to sell you on a service that deals with the problem.[1] Coming May 2: the end of "de miniumus" customs exemptions for small packages under $800 value. Goodbye, Shein, Ali Express, and dropshippers. Unless, of course, the rules are changed again. [1] https://www.afcinternationalllc.com/customs-brokerage-news/understanding-insufficient-customs-bonds-9-easy-steps/ https://www.afcinternationalllc.com/customs-brokerage-news/u...

Eddy_Viscosity2 1y ago

The infrastructure for handling all the tarrif payments and rebates etc simply can't change as fast as these announcements and as a result there will be a whole mass of incorrect charges being applied or not applied that could takes years to sort through. The chaos is the point, or so it would seem.

nikanj 1y ago

They are effective on the day of passing customs to the US

Aurornis 1y ago

Applied at time of passing through customs. More typical policy would give 90 days notice so businesses could plan ahead. This policy was implemented far too fast with far too high of numbers and now it’s also changing rapidly. It doesn’t make sense. > I'm not American but it seems madness to apply them at any other time I’m American and I fully agree it’s madness. This administration clearly doesn’t understand or even care how businesses work. They just thought this was going to be a chest-thumping bargaining chip that caused other countries to come begging at the negotiation table. It’s not working and now they’re panicking. They don’t want to look weak by backing down so we’re suffering.

thfuran 1y ago
Trump has been spouting the same shit about trade deficits and the US getting ripped off for several decades. I think he legitimately believes high tariffs are a good idea to "fix" trade deficits.
- erkt 1y ago
  It’s not about trade deficits-it’s about becoming an independent manufacturer again. Whether or not anyone international buys what we make is secondary. Wealth is disproportionately allocated to those that benefit from globalization but the vast majority of Americans are hurting from it, even if a OLED TV costs nickels.
  - goosedragons 1y ago
    How do these tariffs help the vast majority of Americans? Maybe in a half a decade-decade time they can get a job in some factory as a tech??? Except there's so much uncertainty and so much tariffs even on raw material that it doesn't even make sense from that perspective. Raising prices on everything is not going to help the majority of Americans. Taxing the rich might have but half the rationale for these tariffs is tax cuts for the rich. There is no plan or logic to this.
    - InDubioProRubio 1y ago
      Was there a plan and logic to outsourcing those jobs and leaving half the country to fend for itself and beg for handouts though?
      - goosedragons 1y ago
        Yes, cheaper goods and more profits duh. If Walmart and others can pay as low as possible wages and shift burden onto the state and it's legal they'll do it. And they did.
    - c_o_n_v_e_x 1y ago
      There's a lot more to manufacturing than "just" being a line assembly worker. The factories have to be designed and built. This includes all of the manufacturing processes, equipment, tooling, automation, etc. All of which are done by reasonably paid, middle class engineers and trades. Then you have all the 2nd order businesses that get stimulated. Energy must be provided. Mines, mills, refineries, etc. to make the raw materials. The packaging for the end products. Logistics for supplies and end products. All of the value above used to be in the US but has been captured overseas for decades now.
Animats 1y ago
Right. The normal way this works is that when you buy something to be imported into the US, you compute the tariffs and post a "customs bond" with CBP at the same time you pay for the product. When the shipment arrives in the US, the customs bond is used to pay the tariff, and the shipment is released by CBP. Shipping companies such as DHL integrate this into their systems so the end user doesn't have to deal with it directly. To the purchaser, it looks like tariffs are paid when the product is ordered. That's the happy path, taken by most imports. But when tariffs change faster than it takes to get the shipment from source to destination, the bond won't be for the right amount. You then enter the wonderful world of "insufficient bonds". Here's "Understanding Insufficient Customs Bonds in Nine Easy Steps", which outlines the process and tries to sell you on a service that deals with the problem.[1] Coming May 2: the end of "de miniumus" customs exemptions for small packages under $800 value. Goodbye, Shein, Ali Express, and dropshippers. Unless, of course, the rules are changed again. [1] https://www.afcinternationalllc.com/customs-brokerage-news/understanding-insufficient-customs-bonds-9-easy-steps/ https://www.afcinternationalllc.com/customs-brokerage-news/u...