True, but I am still betting on the President, who said "All tariffs are still in effect! Today a Highly Partisan Appeals Court incorrectly said that our tariffs should be removed, but they know the United States of America will win in the end,"
My personal view is that these tariffs are becoming a major source of revenue for the U.S. and will prove very difficult to dismantle, even after the current administration leaves office.
gatorcpa
The main reason that post offices many countries have suspended package services is that they lack internal customs brokerages to assist their customers in filling out the appropriate paperwork so that proper Customs duties are paid. Local post offices are not yet set up to do that, either inside or outside the U.S.
Some countries may eventually train their staff to handle the customs, others with privatized post offices (Germany) might direct customers to their more expensive express services that include customs declarations.
It seems to me that the big winners here are large private companies that have Customs brokers on staff. This would include UPS, FedEx, DHL, Amazon, Walmart, as well as foreign equivalents that I don’t know about.
The losers are small businesses and individuals, who do not have access to these services at reasonable rates.
My personal view is that these tariffs are becoming a major source of revenue for the U.S. and will prove very difficult to dismantle, even after the current administration leaves office.
I don’t know if personal exemptions will be brought back at some point. I hope so, but so long as our government’s official position is that all Americans who receive packages from overseas are drug smugglers, I don’t see that happening in the short term.
gatorcpa
My personal view is that these tariffs are becoming a major source of revenue for the U.S. and will prove very difficult to dismantle, even after the current administration leaves office.
All these countries that rushed to make a deal for a certain percentage tariff rate - since the other country has signed some agreement with the US, are these liable to be struck down?
All these countries that rushed to make a deal for a certain percentage tariff rate - since the other country has signed some agreement with the US, are these liable to be struck down?
I don’t think so. Trump is correct when he says that one of the main powers reserved for the Executive Branch is negotiating agreements with foreign governments. It’s an important function of the Department of State.
Generally treaties with foreign governments require 2/3 Senate ratification to be effective. However, there is something called an “Executive Agreement” that is not considered a treaty.
https://en.m.wikipedia.org/wiki/Executive_agreement
So it is likely that these Executive Agreements on trade would stand even if the Supreme Court reversed the discriminatory tariffs.
gatorcpa
Tariffs can be set by a simple majority of Congress, and it is very likely that even members who dont like the idea of the executive using tariffs to reshape the global economy, would not rush to throw the world into even more chaos. If the Supreme Court affirms the ruling, which is unlikely, I think tariffs will remain, just set by Congress, which is clearly what the Constitution intended anyway.
The idea of doing all this with executive orders is so ridiculous and infuriating.
You mean the tariffs aren't being paid by the foreign countries? 🤪
It'd be similar to the European VAT.
VAT, GST, sales and use tax operate the same in the eyes of the general public. A regressive tax on consumption.
Please read my post above regarding how VAT affects manufacturing and wholesale businesses. Very different result.
Tariffs are non-recoverable. If tariffs go away tomorrow, there is no way to get a refund. This is why import/export business with the U.S. has slowed to a fraction of what it was a year ago.
gatorcpa
