Agree, thank you. I own a home textile factory in the U.S. where we cut, sew, stuff fabric into pillows etc. Fabric import tariffs have been hurtful to our business especially as foreign manufacturers are able to ship finished products direct to consumer tariff-free under the de minimis exemption. We provide well paying jobs with benefits so this hurts U.S. workers. All of that is to say, you have captured the other layer of complexity here in an already globalized world.
I am asking myself to what degree multinational corporations could decrease their tariff burden by reporting artificially low prices for input goods before they import them along their supply chain to the U.S. If multinationals could do this and SMEs couldn't, then tariffs would again go in the opposite direction as intended by pro-tariff politicians.
Agree, thank you. I own a home textile factory in the U.S. where we cut, sew, stuff fabric into pillows etc. Fabric import tariffs have been hurtful to our business especially as foreign manufacturers are able to ship finished products direct to consumer tariff-free under the de minimis exemption. We provide well paying jobs with benefits so this hurts U.S. workers. All of that is to say, you have captured the other layer of complexity here in an already globalized world.
I'm sorry to hear that, but that is a great example. Thanks for sharing and supporting!
I am asking myself to what degree multinational corporations could decrease their tariff burden by reporting artificially low prices for input goods before they import them along their supply chain to the U.S. If multinationals could do this and SMEs couldn't, then tariffs would again go in the opposite direction as intended by pro-tariff politicians.
It's a great question and I wish I knew more about the workarounds for tariffs. The thing I always think about is de minimus rules where you don't pay taxes on small transactions. So you get Temu which ships direct to consumers instead of the usually more efficient distributions through importers https://www.npr.org/2024/03/28/1241357550/import-tariff-loophole-helps-online-shopping-site-temu-offer-low-prices
That's not your point. It's just me agreeing people find workarounds and I wish I understood them better