Make Me Smart We answer more of your questions about tariffs
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Mar 20, 2025 Curious about tariffs? This discussion breaks down how they’re applied and what they’re based on. Learn who really pays for them and why countries impose retaliatory tariffs. Discover the complex relationship between tariffs and the automotive industry, where prices can soar due to trade policies. The conversation also touches on targeted products like bourbon and motorcycles, revealing how consumers often feel the pinch. Tune in for an insightful exploration of these economic intricacies!
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Tariff Application
- Tariffs are applied at the port of entry when goods arrive in the U.S.
- A specialized industry helps importers navigate tariff paperwork and payments.
Tariff Basis
- Tariffs are based on the importer's cost, including manufacturing, shipping, and logistics, not the retail value.
- Costs incurred after the goods land in the U.S., like wholesale and retail markups, are not subject to tariffs.
Cars and Multiple Border Crossings
- Cars sometimes cross the border multiple times during manufacturing, incurring tariffs each time.
- This can significantly increase the final cost for consumers, potentially adding thousands of dollars to the price.