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The products are manufactured elsewhere.
Even products "made in the USA", like an automobile, rely on parts from overseas suppliers, especially China.
My cats food for example, dewault has similar tags on their power tools.
Are tariffs applied when a company produces something in one country and transports them to their own company in another country? I thought they only applied to sales.
The only thing tariffs do is raise the price of imported and exported goods. The intent behind that is to encourage domestic production of a given good. However, we largely do not have domestic production of many, many, many different goods in the USA. So the primary outcome is going to be a decade or more of much higher prices for literally every single kind of consumer, business or industrial grade electronic device or good. It's terrible for the economy. It will lead to a record recession or even a depression. Tariffs do not punish the target country. They punish Americans attempting to buy from those countries. This means new start-ups and new businesses will not be able to afford things from third-party manufacturers in China.
Not only new businesses, this will ABSOLUTELY lead to the extinction of already established businesses as well. The magat cretins have ZERO clue how bad this will be.
This. It’s basically a fucking stupid version of forcing the increased pricing onto us to increase corporate profits or whatever their end goal is. If China is charged 10% more to get their pieces to us. They are not taking that hit over our internal political retardation.
China isn't charged shit to send us stuff. The tariffs are paid by the company importing the goods (aka the buyer)
Tariffs punish every country, actually, unfortunately.
Including the one who started the inevitable trade war.
My understanding Is that they apply to importing goods.
You can't just import something and put it in a local warehouse to avoid tariffs. Then nobody would pay them ever
Some businesses in Russia have loopholes like importing components and making a local assembly, up to just putting their sticker on it. I wonder what % of production process would be enough to count a product as Made in USA.
You're still importing the base materials and have to pay tariffs on that. That's not getting around anything. The end consumer still foots the bill.
Depends on what the tariffs are about. If there's a tariff on a specific category of finished consumer goods, an import of the materials/ parts in combination with a local assembly might indeed reduce or avoid the taxes you have to pay.
20% across the board, says the magat's fuhrer.
Each piece brought in is taking the hit from the tariff if its under a tariff. The only way to “avoid” is what we call smuggling.
Yep. Yet finished prodiuct for end user is declared pricier thsn individual parts and certified differently.
Isn't that how America does taxes in everything else?
No.
Its an import tax, not sales tax.
What do you suppose these companies might want to do with their products once they transport them to this other branch location?
Throw them at passersby?