Quote:
Originally Posted by MacDaddy77
Sorry but isn't this backwards and what is being discussed is a USA tariffs on imported CDN Oil and the tariff would be added to the end user? Export Tariffs aren't very common where import tariffs are.
I think there's conflicting use in the import/export tariff terminology. People are focusing on the export of Oil and Gas where it would be the import of the refined product and other USA products that would see an increase.
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No, export tariffs are specifically what has been talked about.
Import tariffs by the US and export tariffs by Canada both have the same overall effect (increased cost to the US), the difference is who pays the tariff at the point of import/export. For imports by the US, US entities are responsible. The exporter has the option to alleviate the tariff by reducing the price or the importer simply pays it. For exports to the US, the exporter has the option to alleviate the tariff by increasing the price or the exporter simply pays it.
In both cases, the usual procedure is that the increase cost lands with the importer.