Today, 10:58 PM | #32 |
Join Date: Feb 2021
Location: Kansas City
Posts: 2,755
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I thought tariffs are paid by the importer of record, at customs, not the manufacturer in the country of origin. The importer might be ordering parts, like a domestic auto manufacturer buying relays or windshield wiper motors, or could be a big box store getting finished clothes washers or dryers ready to sell. Cell phones, toasters, microwave ovens, whatnot, the importer pays the tariffs and the increase is usually just passed to the consumer. It spurs inflation.
The manufacturer of origin probably suffers lower sales, but they don't pay the tariff. Lowe's just charges more for the BBQ grill, wheel barrow or whatever.. You can check me on this, but I think this is how it works. I don't think you can collect taxes directly from a manufacturer like Kia or Fiat. Maybe the importer can ask the manufacturer to pay all or part of the tax. Not sure if that happens. It would be a contractual arrangement, right? I wonder?
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