For example if company X produces half of a product in country A then exports the half finished product to country B where more parts are added and the finished product is made and sold to consumers.
The intermediate good never goes on the market so how is a price assigned for a tariff to be applied?
Comments
📣 Reminder for our users
>1. Check the rules: Please take a moment to review our rules, Reddiquette, and Reddit’s Content Policy.
>2. Clear question in the title: Make sure your question is clear and placed in the title. You can add details in the body of your post, but please keep it under 600 characters.
>3. Closed-Ended Questions Only: Questions should be closed-ended, meaning they can be answered with a clear, factual response. Avoid questions that ask for opinions instead of facts.
>4. Be Polite and Civil: Personal attacks, harassment, or inflammatory behavior will be removed. Repeated offenses may result in a ban. Any homophobic, transphobic, racist, sexist, or bigoted remarks will result in an immediate ban.
🚫 Commonly Asked Prohibited Question Subjects:
>1. Medical or pharmaceutical questions
>2. Legal or legality-related questions
>3. Technical/meta questions (help with Reddit)
This list is not exhaustive, so we recommend reviewing the full rules for more details on content limits.
✓ Mark your answers!
>If your question has been answered, please reply with
Answered!!to the response that best fit your question. This helps the community stay organized and focused on providing useful answers.I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
Engines built in Europe and imported to the US to be installed in cars manufactured in the US will have tariffs.
I can tell you my experience. I import from eu. I had to pay extra 10% for goods. Not only that but the dollar is falling rapidly. So I had to pay extra on top of the tariff. Monday we are adding a djt surcharge on our products. Hope this ends soon
The company in country A has to assign a value to anything that they export. It’s essentially for accounting to know the value of the products in their warehouses for insurance and other reasons.
Company X’s Country B subsidiary has to bill Company X’s Country A subsidiary for the partially completed product it delivers. The tariff is applied to that pricing. It gets difficult, which is why countries like US , Mexico and Canada had such a long history of tariff free trade on manufactured goods, to facilitate cross border manufacturing coordination.