At the border you pay tariffs on all the costs up to that point, because they are all considered to be part of the value of the shipment as it crosses the border. So the price of good, plus the price of packaging (as far as it was packaged in China), plus the price of the freight shipping are tariffed together, which makes the result of the calculation a little worse, but fundamentally you’re right.
There are also non finished goods, like car components. Components from other tariff regions and US labor costs won’t have that much, but there finished product will have a price hike
I’m thinking more your staff, your shipping from your warehouse to your customers, your retail store and rent, etc.
Which all of course varies depending on the business you are. A small retail store would be affected much less by this than a much larger, more efficient operation that might not have retail locations at all.
Yes, then you only pay tariff for the powder, for the big jar, and the transpacific shipping of the big jar. That’s what I meant by “as far as it was packaged in China”.
At the border you pay tariffs on all the costs up to that point, because they are all considered to be part of the value of the shipment as it crosses the border. So the price of good, plus the price of packaging (as far as it was packaged in China), plus the price of the freight shipping are tariffed together, which makes the result of the calculation a little worse, but fundamentally you’re right.
There are also non finished goods, like car components. Components from other tariff regions and US labor costs won’t have that much, but there finished product will have a price hike
I’m thinking more your staff, your shipping from your warehouse to your customers, your retail store and rent, etc.
Which all of course varies depending on the business you are. A small retail store would be affected much less by this than a much larger, more efficient operation that might not have retail locations at all.
It depends on if it is something like a powder that comes raw in a 200 lb jar and you package it yourself into small containers.
Yes, then you only pay tariff for the powder, for the big jar, and the transpacific shipping of the big jar. That’s what I meant by “as far as it was packaged in China”.