I export low-margin goods to USA from EU, which will incur now a 20% tariff, eating into profit margin, so I am following the tariff situation closely. Not convinced yet the tariffs will be a long-term thing. My hope is that it will be mitigated and that exceptions will be created through some negotiation.
I am interested in the question of 'de minimis' (the $800 limit under which customs doesn't care about duty) being targeted for removal, which is also to take place soon. This is also bad. Note: Duty, sales tax and tariff are different things.
There is already a lot of fraud in the import/export business, and other illegal activity. I am not sure if the collection of tariffs on everything will help much, even if that may partly be the intent. There are many packages (1+ billion yearly), so I expect to set up a system to process them for collection of tariffs, will take time to become efficient and applicable on everything. The Secretary of Commerce is supposed to report when such is done, so the 'de minimis' can be removed.
So not only is the tariff applied as cost, there will be more administrative cost for businesses, AND for government. Bad overall, even if some US manufacturers and certain industries will benefit.
I am also looking into ways to get around the tariffs. There are products that have exemptions, and as we know the tariffs are not applied evenly to all countries. I am also looking into US 'country of origin' certificates (for partial reduction of tariff in proportion to US manufacture % of the good), and similar concepts.
We will see if the implementation will happen exactly as planned. Worst case scenario is a tariff trade war that plays out for several years.
I am interested in the question of 'de minimis' (the $800 limit under which customs doesn't care about duty) being targeted for removal, which is also to take place soon. This is also bad. Note: Duty, sales tax and tariff are different things.
There is already a lot of fraud in the import/export business, and other illegal activity. I am not sure if the collection of tariffs on everything will help much, even if that may partly be the intent. There are many packages (1+ billion yearly), so I expect to set up a system to process them for collection of tariffs, will take time to become efficient and applicable on everything. The Secretary of Commerce is supposed to report when such is done, so the 'de minimis' can be removed.
So not only is the tariff applied as cost, there will be more administrative cost for businesses, AND for government. Bad overall, even if some US manufacturers and certain industries will benefit.
I am also looking into ways to get around the tariffs. There are products that have exemptions, and as we know the tariffs are not applied evenly to all countries. I am also looking into US 'country of origin' certificates (for partial reduction of tariff in proportion to US manufacture % of the good), and similar concepts.
We will see if the implementation will happen exactly as planned. Worst case scenario is a tariff trade war that plays out for several years.
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