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@timbray@cosocial.ca I would assume it’s the US buyer? I can’t really imagine that the US would put it on the seller especially if they can’t go after the seller for simply not paying the irs

@timbray The importer pays the tariff, to the Customs Service (not the IRS) at the border when it is imported.

@timbray although there are exceptions, importers pay at time of import.

In your example the buyer pays 100k to the seller and 25k to the US Treasury.

@timbray it is the buyer who pays the tarrif upon import. US customs won't release without payment. The buyer then recoups the tarrif by increasing their price.

@timbray when you get a package and get charged duty, who pays? Exactly the same .

@timbray
I assume that the idea of the tariff is that the importer in the USA has to increase the sale price when using the Canadian product, so this might encourage buying from a local US canola oil producer - if they exist. Or switch to another country for supply. In the longer term, maybe (or maybe not) it would encourage US production of canola oil, but in the short term, it would cause increased costs for the consumers.

@timbray Who winds up paying may depend on how the contract was written. If the contract was that the price is FOB the co-op and the US food processor pays for and deals with all shipping, customs clearance, and so on, the food processor pays imports. But if the co-op contract was '$100K for delivered to your receiving dock' then the co-op might have to pay the new extra duties, since it's their contractual responsibility to pay for all shipping and delivering.

@timbray The importer pays, then they raise their price when they sell domestically.

@timbray I honestly suspect Trump doesn't understand tariffs at all, thinking them some kind of punitive fine on the foreign nation

@alexbrn @timbray I think that this is generally true of Trump for pretty much any concept with a simplistic (and wrong) reasoning. I've yet to see anything to change my belief that he is a buffoon whose sole ability is to say the hateful things that much of the US population secretly agrees with.

@alexbrn @timbray It’s abundantly clear he has no idea. And if anyone in his orbit does, either they’re too afraid to explain it to him or he just doesn’t give a shit.

@alexbrn @timbray also clearly has not gotten through the “if they’re so great why doesn’t everybody use them all the time for everything” though process

@timbray the importer pays this in order for the shipment to clear customs.

@timbray
Importer pays tariff to their home government. Tariff is collected during customs clearance. In the US the tariff is paid to US Customs and Border Protection Service https://www.cbp.gov/ at the border usually by a licensed US broker representing the importer.

The broker handles customs declaration and clearance, goods valuation and classification, all documentation and procedures for clearing the canola oil through customs.

The primary valuation method is transaction value, other methods are used if that is not available. WTO Valuation Agreement determines how customs valuation is done.

Frequent exporters know the commodity codes for their products and tariffs and duties customer has to pay, and informs the buyer beforehand.

@timbray

I am not too clear on tariffs, but execs at a few companies (like Walmart and Autozone) have said that they would need to raise prices.

Also: I think tariffs are handled by the Dept of Commerce. There is no need for an "External Revenue Agency". Trump is an idiot.