More tariffs questions

[Zbip57]

When buying stuff online, I used to take advantage of offers of "free shipping with the continental states". Ordering stuff from the USA and having it shipped to Ottawa, Canada, was often much more expensive because of brokerage fees etc for cross-border shipping.

But with free shipping within the USA, I'd have the package delivered to and held at the UPS Store in Ogdensburg NY, which is less than an hour's drive from Ottawa. Bringing it back into Canada meant declaring the purchase at the border and paying whatever sales taxes, duties, tariffs applied. I would have needed to pay those fees in any case, paid to UPS or FedEx or DHL or whichever shipping company delivered to Ottawa. But by fetching the parcel myself from Ogdensburg I saved a big chunk on shipping and brokerage fees.

Usually it was car parts for my old BMW. Even though those parts were purchased from a supplier within the USA, those BMW parts were originally manufactured in Germany and thus subject to whatever tariffs apply to German manufactured auto parts. I don't know if those still exist, but at the time Canada did impose an import tariff on German auto parts. It's intended to protect our domestic North American auto industry.

I once ordered a set of four new Yokohama tires this way for my car. What with shipping handling and FedEx brokerage fees etc, the tires would have cost me nearly double the price if purchased from a shop in Ottawa, compared to free shipping within the USA and picking them up myself in Ogdensburg. And, even though Yokohama is a Japanese tire manufacturer, these particular tires were manufactured at Yokohama's US factory located in Virginia. The sidewalls are even stamped "Made in the USA".

Because Canada, Mexico, and the USA have [had!] a Free Trade Agreement, no extra duties or tariffs were applied when I declared the purchase of the tires upon crossing back into Canada.

All of that has now been destroyed with tariffs and counter-tariffs and retaliatory tariffs driving cross-border business into the toilet.

I understand the intent. Rather than buying tires from Japan, your administration instead wants more factories to manufacture everything within the USA. Yokohama has two factories in the USA. But it takes time to build new factories. Meanwhile excessive tariffs are hurting everyone.

 

[Mrktn]

Looks like we will get to see what Amazon thinks are the actual tariffs imposed on each of their products with plans to publish it widely (on their website) for all paying customers to see. Interesting.

Yipppp breaking news at the latest WH presser

 

[Mrktn]

When buying stuff online, I used to take advantage of offers of "free shipping with the continental states". Ordering stuff from the USA and having it shipped to Ottawa, Canada, was often much more expensive because of brokerage fees etc for cross-border shipping.

But with free shipping within the USA, I'd have the package delivered to and held at the UPS Store in Ogdensburg NY, which is less than an hour's drive from Ottawa. Bringing it back into Canada meant declaring the purchase at the border and paying whatever sales taxes, duties, tariffs applied. I would have needed to pay those fees in any case, paid to UPS or FedEx or DHL or whichever shipping company delivered to Ottawa. But by fetching the parcel myself from Ogdensburg I saved a big chunk on shipping and brokerage fees.

Usually it was car parts for my old BMW. Even though those parts were purchased from a supplier within the USA, those BMW parts were originally manufactured in Germany and thus subject to whatever tariffs apply to German manufactured auto parts. I don't know if those still exist, but at the time Canada did impose an import tariff on German auto parts. It's intended to protect our domestic North American auto industry.

I once ordered a set of four new Yokohama tires this way for my car. What with shipping handling and FedEx brokerage fees etc, the tires would have cost me nearly double the price if purchased from a shop in Ottawa, compared to free shipping within the USA and picking them up myself in Ogdensburg. And, even though Yokohama is a Japanese tire manufacturer, these particular tires were manufactured at Yokohama's US factory located in Virginia. The sidewalls are even stamped "Made in the USA".

Because Canada, Mexico, and the USA have [had!] a Free Trade Agreement, no extra duties or tariffs were applied when I declared the purchase of the tires upon crossing back into Canada.

All of that has now been destroyed with tariffs and counter-tariffs and retaliatory tariffs driving cross-border business into the toilet.

I understand the intent. Rather than buying tires from Japan, your administration instead wants more factories to manufacture everything within the USA. Yokohama has two factories in the USA. But it takes time to build new factories. Meanwhile excessive tariffs are hurting everyone.

Interesting. So DJI ship their drones at the unchanged RRP on the order of the retailer and export them to the USA for
example. The retailer decides whether to take them based on the tariffs they would have to pay the US government, as they’re coming from China. They decide to take the stock. Then the retailer decides whether to absorb the tariffs paid or pass all or some of them on to the customer. Please confirm that’s correct, just for my own understanding

 

[Zbip57]

So DJI ship their drones at the unchanged RRP on the order of the retailer and export them to the USA for
example. The retailer decides whether to take them based on the tariffs they would have to pay the US government, as they’re coming from China. They decide to take the stock. Then the retailer decides whether to absorb the tariffs paid or pass all or some of them on to the customer. Please confirm that’s correct, just for my own understanding

That's exactly it.

As per the initial post by akdrone, "somebody" has to pay that 145% tariff. The money goes into the US Treasury, thereby making america great again.

On a $3,000 drone, a 145% tariff is an extra $4,350 import tax surcharge.

DJI in China still sells the drone for $3,000. China doesn't pay $4,350 to the US gov't for the honour of being allowed to sell a $3000 drone to US consumers. No business can afford that sort of math. DJI still sells the same product at the same price of $3,000.

It's the US importer who pays that extra $4,350 tax. If that's you, receiving the drone delivered directly from China, then Customs will expect YOU to pay the import tax.

If it's Walmart importing the drone, then Walmart pays the tariff. Walmart is certainly never going to swallow that extra cost. They add it to the shelf price. That previously $3,000 drone is now going to show up on Walmart's shelves costing you the consumer;

$3,000 + $4,350 = $7,350

As of April 2025, the U.S. has imposed steep tariffs on Chinese goods, including drones. The baseline tariff on Chinese imports has increased to 145% . This means your $3,000 drone could be subject to approximately $4,350 in tariffs, bringing the total cost to around $7,350.

No retailer is ever going to offer to "absorb" that $4,350 tariff cost and continue selling the same drone for only $3,000. The tariff will always somehow be passed on to the final purchaser, that's you the consumer.

The 145% import tariff is a "sales tax" imposed on consumers buying products from China. YOU are making america rich again. Supposedly, there will be "billions and billions and billions" collected in this manner...

 

[msinger]

DJI in China still sells the drone for $3,000. China doesn't pay $4,350 to the US gov't for the honour of being allowed to sell a $3000 drone to US consumers. No business can afford that sort of math. DJI still sells the same product at the same price of $3,000.

No consumer can afford that sort of math either.

It's important to note that tariffs are applied to the cost of goods, not to the price tags consumers saw on the shelves before tariffs were imposed.

 

[mavic3usa]

That's exactly it.

As per the initial post by akdrone, "somebody" has to pay that 145% tariff. The money goes into the US Treasury, thereby making america great again.

On a $3,000 drone, a 145% tariff is an extra $4,350 import tax surcharge.

DJI in China still sells the drone for $3,000. China doesn't pay $4,350 to the US gov't for the honour of being allowed to sell a $3000 drone to US consumers. No business can afford that sort of math. DJI still sells the same product at the same price of $3,000.

It's the US importer who pays that extra $4,350 tax. If that's you, receiving the drone delivered directly from China, then Customs will expect YOU to pay the import tax.

If it's Walmart importing the drone, then Walmart pays the tariff. Walmart is certainly never going to swallow that extra cost. They add it to the shelf price. That previously $3,000 drone is now going to show up on Walmart's shelves costing you the consumer;

$3,000 + $4,350 = $7,350



No retailer is ever going to offer to "absorb" that $4,350 tariff cost and continue selling the same drone for only $3,000. The tariff will always somehow be passed on to the final purchaser, that's you the consumer.

The 145% import tariff is a "sales tax" imposed on consumers buying products from China. YOU are making america rich again. Supposedly, there will be "billions and billions and billions" collected in this manner...

Apparently we get to entertain the idea of no longer having to pay income taxes to the IRS if this all goes well. Good luck with that.

 

[Slim.slamma]

Looks like we will get to see what Amazon thinks are the actual tariffs imposed on each of their products with plans to publish it widely (on their website) for all paying customers to see. Interesting.

Put a halt to that immediately!

 

[Zbip57]

It's important to note that tariffs are applied to the cost of goods, not to the price tags consumers saw on the shelves before tariffs were imposed.

For sure.

Everybody handling the goods after the point of import (shipping, handling, warehousing, marketing, advertising, etc) until the product eventually is placed on a shelf for sale is going to add their own markup for their own benefit and profit. At the end of the chain, the consumer finally pays for all of that.

The other danger is, let's assume an American drone producer figures out a way to domestically build a drone of similar quality compared to that $3000 DJI drone. Consumers become accustomed to seeing good quality drones now costing $7350 (tariffs included). Do you think that any domestically produced drone is going to be offered for sale at only $3000, when the nearest competitor's drones sell for $7350.

Nope.

That American drone will be sold for $6000 (double what it's worth), seemingly a screaming deal at a $1350 "saving" compared to a +$7350 DJI drone.

It's only after there are several different American drone producers to create a competitive market that you'll ever again see a realistic price offering. Tariffs hurt everyone.

 

[AMann]

Apparently we get to entertain the idea of no longer having to pay income taxes to the IRS if this all goes well. Good luck with that.

Taking from the poor to give to the rich, you mean? But that’s as far as I’ll go on that one.

When my M2P’s finally die, I’ll seriously be considering going back to home built drones, but I’m afraid that batteries, flight controllers, cameras and motors, mostly from China, will also be horribly expensive. But still, doing this will be a lot less than what the new DJI products will cost in the US.

 

[Mrktn]

That's exactly it.

As per the initial post by akdrone, "somebody" has to pay that 145% tariff. The money goes into the US Treasury, thereby making america great again.

On a $3,000 drone, a 145% tariff is an extra $4,350 import tax surcharge.

DJI in China still sells the drone for $3,000. China doesn't pay $4,350 to the US gov't for the honour of being allowed to sell a $3000 drone to US consumers. No business can afford that sort of math. DJI still sells the same product at the same price of $3,000.

It's the US importer who pays that extra $4,350 tax. If that's you, receiving the drone delivered directly from China, then Customs will expect YOU to pay the import tax.

If it's Walmart importing the drone, then Walmart pays the tariff. Walmart is certainly never going to swallow that extra cost. They add it to the shelf price. That previously $3,000 drone is now going to show up on Walmart's shelves costing you the consumer;

$3,000 + $4,350 = $7,350



No retailer is ever going to offer to "absorb" that $4,350 tariff cost and continue selling the same drone for only $3,000. The tariff will always somehow be passed on to the final purchaser, that's you the consumer.

The 145% import tariff is a "sales tax" imposed on consumers buying products from China. YOU are making america rich again. Supposedly, there will be "billions and billions and billions" collected in this manner...

Ah, I get it now, thanks for clarifying

Not in any way smiling at you guys, smiling at myself for grasping it.

Gutted for American fellow members on here and everyone else in the US. Hope things change soon for y’all