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How do tariffs work?

1 reply

Donotpanicoknowpanic · 03/04/2025 06:57

Trump has announced some tariffs

I am correct in thinking the work like this

If China makes a printer for £100 and sells it to America it then costs £134 as it a 33% tariff

If the UK sold a printer to America for £100 it would cost £110 as there is a 10% tariff

What if the printer was made in china, posted to the UK then sent to America? What would the tariff be

Also I know the tariff is paid by the American company importing the printer

I would assume on the wholesale price

Last question, what if the printer was imported to America, modified and then exported, what would the tariff be?

Anyone know? I'm curious to how this all works

I know there is a separate tariff for cars as well, but keeping it simple

OP posts:
Meadowfinch · 03/04/2025 10:34

Nearly. If China produces a printer for $100, they add shipping costs and profit to the amount they sell it for in the US. The US then adds 33% tariff to that. The US. wholesaler and the retailer then add their own profit at say 50% which would include 50% of the tariff amount. So the price compounds up.

I feel sorry for US consumers. Things are going to get very tough for lower income US consumers.

No idea what happens if goods are shipped to the UK and then repacked before shipping on to the US.

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