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Thread: Who Pays for Anti-Dumping and Countervailing Duties?

  1. #1
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    Who Pays for Anti-Dumping and Countervailing Duties?

    President Trump sent a boastful tweet on 1/3/2019:

    The United States Treasury has taken in MANY billions of dollars from the Tariffs we are charging China and other countries that have not treated us fairly...

    Actually the seasonally adjusted Federal Customs Receipts are now running about $5 billion per month. This is by far the highest amount for as far back as I can see. In 2002 the Federal Customs Receipts were less than $2 billion per month. During 2018 the monthly take from tariffs increased from $3 billion the most recent $5 billion.

    Does Donald Trump believe that China is being charged? Or is he spinning a deceptive version of events?

    I understand that Anti-Dumping and Countervailing duties, as well as any general or special tariffs are all paid by the importer. (Think "Wal-Mart", "Amazon", "Dell", "KitchenAid", "Whirlpool", etc.) The importer pays the estimated duties by a cash deposit at the time the goods enter the United States. Then Customs and Border Protection assesses a final amount due and will accordingly send the importer either a bill or a refund.

    Initially the importer pays, and ultimately (if sales go according to plan) the importer passes the costs of customs duties along to American consumers.

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    US Trade Representative Robert Lighthizer says the USA will increase tariffs on $200 billion worth of Chinese imports from 10% to 25%, which President Trump called for in his tweets on 5/5/2019.

    As I read the tweets, it would seem that Donald Trump believes China is paying the USA when a duty or tariff is imposed by the USA. Actually the duties and tariffs are paid by importers, and ultimately by US consumers when they buy goods imported from China.

    Threats of higher tariffs are frequently uttered by Donald Trump. Other countries typically threaten higher retaliatory tariffs. International trade volumes are declining. It is difficult for me to see the USA as a winner in this game.

    .

  3. #3
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    The tariffs aren't being paid by the manufacturers. They're being paid by US consumers. Researchers found that the 20% tarriff on washing machines made in certain countries has resulted in an overall increase of 12% on all washing machines sold in the US and also 12% more for all dryers sold in the US. So not only are prices increased more than the tariffs, but the increase has been applied to all washing machines, not just those that are being tariffed.

    And for the number of jobs created in the US the cost to consumers in the US for more expensive washers/dryers was over $800,000 per job.

    https://www.nbcnews.com/business/con...st-100-n999461

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