Question About Tariff Rebates

[gab13by13]

There are records, it can be done, with that said, how about this example;

Dick's Sporting Goods buys 100 golf clubs from China, 100 dollars per club and they pre-pay 10,000 dollars.

Krasnov puts a 20% tariff on those clubs.

The clubs arrive at a port, but they can't be shipped to Dick's until Dick's pays the importer person 2,000 dollars, am I correct? Then they can be shipped.

Dick's was going to sell each club for 150 dollars and make 50 dollars profit. If Dick's eats the tariff and still sells the club for 150 dollars it lost 20 dollars profit but is entitled to all of the rebate, correct? If Dick's charges 170 dollars for the club it still makes 50 dollars profit and the consumer is entitled to the rebate, correct? Dick's has the paperwork to legally claim the rebate, but may not be entitled to it. Can Dick's claim that it is paying its workers more money so that is why it charged an extra 20 dollars for the club? Buying goods at wholesale and then selling them at retail will prevent consumers from getting the rebates will it not?

Another question, is this importer person appointed by Krasnov? When he gets the tariff money does it go to the treasury or to a bank in Qatar?

[LuckyCharms]

1. The whole thing is a bookkeeping nightmare...

and I do not believe it is as easy as some on the news are saying.

1) We're probably talking about tens of thousands of importers, wholesalers, and retailers.

2) The ideal goal would be to split the rebates equitably between the above entities and the public.

3) How do you pin down price increases on perhaps hundreds of thousands of items between tens of thousands of retailers and wholesalers? How much of the tariffs were absorbed by said retailers and wholesalers, and how much were passed on as price increases?

4) What about the unsold items that are still remaining in inventory?

5) Where is the manpower to analyze and administer these rebates?

6) I don't think this can realistically be resolved in a perfectly fair manner. I think the best that can be done is to rebate the importers and business entities x% of the tariffs that were paid, with 100% minus x% being returned via a check to every person in the country.

Trump fucked things up impressively well.

[Ms. Toad]

2. The consumer has no legal right to a refund if the tarrif.

The importer likely has a right, although the mechanics are not clear as to how to enforce that right.

But the consumer bought a good, and paid the asking price, presumably deciding it was worth the asking price. That price may have been inflated by tariffs - or perhaps not, depending on the importers evaluation of the price the market would bear, versus desired profit margin. So I'm this scenario - the importers who decided to pass the entire cost on, win. Those who choose to eat the cost (or who imported in advance of the illegal tariffs and stored until ready to sell) get mostly made whole. In the former, consumers lose - big time. In the latter, they paid no more than they would have had the illegal tariffs not been imposed.

The only containers who might have a legal claim would be those who bought from companies who listed the tarrif as a separate line item (like shipping). Their action would be against the vendor who choose to explicitly pass on the tarrif. Otherwise, it all vanishes into the cost of goods sold, and becomes a higher profit margin for the importer.

[gab13by13]

3. Then we have another situation

GM buys carburetors from China for its new cars, the carburetors are charged a tariff which increases the price of the car, but at what %?

GM could add up all of the parts it bought under the tariff and figure out how much that added to the price of the car I guess? Some of the car parts may be tariffed while others may not.