Quote:
Originally Posted by Engine09
Semi-related, was hoping someone can give me some insight on how a Canadian company was able to get away with not paying the 25% retaliatory tarrif.
From Mar 2025 to Sep 2025 while it was in effect this company was selling US made products that were absolutely subject to the 25% reciprocal/retaliatory without adding that to the final bill.
Was there a program that retailers could apply for to be exempt? Some way to delay?
Did they import everything before Mar 2025?
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- the final bill does not need to show the tariff. Companies do that to blame their government for the price increase as they don't want to be accused of jacking up prices for profit
- tariffs are paid on import by the importer. If the products were imported prior to tariffs kicking in, then there were never any tariffs on it.
- sometimes tariffs only kick in at a certain volume. Like you can import 100k worth of goods but the tariff applies only on the last 25k if the first 75k is exempt.
- sometimes a company will just eat the tariff in hope that it won't hurt their sales pipeline. So if there used to be a 35% profit, they might now only be taking a 10% profit if it's a 25% tariff. Better than upsetting your customer. In the meantime they are probably looking at alternative suppliers.