Some businesses in Russia have loopholes like importing components and making a local assembly, up to just putting their sticker on it. I wonder what % of production process would be enough to count a product as Made in USA.
Depends on what the tariffs are about. If there’s a tariff on a specific category of finished consumer goods, an import of the materials/ parts in combination with a local assembly might indeed reduce or avoid the taxes you have to pay.
You can’t just import something and put it in a local warehouse to avoid tariffs. Then nobody would pay them ever
Some businesses in Russia have loopholes like importing components and making a local assembly, up to just putting their sticker on it. I wonder what % of production process would be enough to count a product as Made in USA.
You’re still importing the base materials and have to pay tariffs on that. That’s not getting around anything. The end consumer still foots the bill.
Depends on what the tariffs are about. If there’s a tariff on a specific category of finished consumer goods, an import of the materials/ parts in combination with a local assembly might indeed reduce or avoid the taxes you have to pay.
20% across the board, says the magat’s fuhrer.
Each piece brought in is taking the hit from the tariff if its under a tariff. The only way to “avoid” is what we call smuggling.
Isn’t that how America does taxes in everything else?
No.