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.
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”.
Yes, I was agreeing with you. But especially to say that the bulk powder from China can be incredibly cheap, so for a lot of goods the 20$ bottle won’t be affected that much by tariffs even if they’re at 150%. It’s the type of thing with a lot of goods where you can look it up and the bulk amount is cheap but then you have to deal with an entire pallet of something you only need like 5 times ever. So buying the small relatively expensive bottle is still better, and with a wild guess it could only be like 1-4 dollars per bottle more.
Less if anything.
You buy something from China for $100. Add packing, staff costs and delivery and you sell it retail for say $200. A nice healthy profit margin.
Now you add the 145%, so it costs $245 from China. None of the rest of it will cost you more. Still an extra $100, for $345 total.
The retail customer pays an extra (345/200=) 72.5% instead.
It’s a lot, but not 145%.
So if your retail price goes up by 145% or more, they either weren’t making a lot of profit before, or they’re greedy bastards.
At the border you pay tariffs on all the costs up to that point, because they are all considered to be part of the value of the shipment as it crosses the border. So the price of good, plus the price of packaging (as far as it was packaged in China), plus the price of the freight shipping are tariffed together, which makes the result of the calculation a little worse, but fundamentally you’re right.
It depends on if it is something like a powder that comes raw in a 200 lb jar and you package it yourself into small containers.
Yes, then you only pay tariff for the powder, for the big jar, and the transpacific shipping of the big jar. That’s what I meant by “as far as it was packaged in China”.
Yes, I was agreeing with you. But especially to say that the bulk powder from China can be incredibly cheap, so for a lot of goods the 20$ bottle won’t be affected that much by tariffs even if they’re at 150%. It’s the type of thing with a lot of goods where you can look it up and the bulk amount is cheap but then you have to deal with an entire pallet of something you only need like 5 times ever. So buying the small relatively expensive bottle is still better, and with a wild guess it could only be like 1-4 dollars per bottle more.