Warren Buffet - Tariffs are not paid by the Tooth Fairy

[paxmao]

https://www.youtube.com/watch?v=g9qMMiK6TUM

[Reynaldo]

Simple economics that gets lost in the political noise. When you slap a tariff on imports, that cost doesn't just disappear into thin air or get absorbed by foreign companies. It gets passed down the supply chain until it reaches the average person's wallet.

[franky1]

businesses know how to get around tariffs and many businesses are already acting now to do so.

..
this has been said many times but there is an obvious peanut user that pretends not to learn and just creates a new topic to start the conversation off again as if its fresh information that he is yet to know or learn

so one last time for the other readers ready to learn.
there is a type of international distribution/logistics pathway called FREEPORTS

lets use TSMC(microchips) as primer example

a decade ago i bough an btc asic.. straight from china, this meant buying it from the chinese retailer. so i paid chinese sales tax at purchasing time. because it was a finished retail ready product it travelled through the normal ports to my country where by customs at my border contacted me about having to pay a tariff to release it from customs at my countries border and be delivered by parcel truck to my home. i paid it and got the delivery.
so china got the sales tax and the chinese manufacturer/retailer got the profit of selling the goods retail ready and my countries government got the tariff income

now imagine this
TSMC change business plan. they set up the final phase fabrication in the domestic country of the consumer. so that they can use the chinese labour to mine, refine and smelt silica into ingots. send the ingots as a unfinished part to their fabricator factory in consumers country via freeports. so that there are no tariffs
the chips are made and assembled.. and then sold as a finished retail ready product in the consumers home country, defining it as locally made.. thus no tariff allowing the consumer to buy from a local retailer cheaper (way cheaper than if whole process was done locally (unrefined silica -> chip))

so parts cost still low chinese labour costs, no tariff to pay, local sales tax means cheaper for consumer
thus best of both worlds for consumer
yes in freeport business model china does not get sales tax, chinese retailer does not get retail profit, and local gov does not get tariff but does get local sales tax

[BADecker]

Weight lifters don't build up muscle from the tooth fairy.
College students don't earn degrees by the tooth fairy.
Automobile technicians don't learn their trade by the tooth fairy.
Firefighters don't put out fires by the tooth fairy.
Anything worth having is worth working for.

The tariffs are just starting. There will be a time of trouble for a while. But if we stick together and work through the hard times, think of the prosperity. The start of the prosperity will be the total lifting of the IRS taxes. The furtherance of the prosperity will be average people starting and running businesses (as regs are lightened). Government won't be able to steal as much money from the people. Besides improvements in money, people will gain a much better respect for themselves and each other. And this is just the start of the prosperity.

As has happened in the past, with tariffs rather than direct taxes, the whole country will prosper.

MAGA

Of course, Buffet will have to work at wiggling his businesses a little if he wants them to remain prosperous.

[DeathAngel]

Trump is crashing the world economy. Stocks, markets, goods, everything is turning to shit & it’s only since he started all this tariff nonsense. He needs to STFU & negotiate with other leaders in private. He is causing a lot of people a lot of harm at the moment. I pray he stops this destruction soon.

[paxmao]

businesses know how to get around tariffs and many businesses are already acting now to do so.

..
this has been said many times but there is an obvious peanut user that pretends not to learn and just creates a new topic to start the conversation off again as if its fresh information that he is yet to know or learn

so one last time for the other readers ready to learn.
there is a type of international distribution/logistics pathway called FREEPORTS

lets use TSMC(microchips) as primer example

a decade ago i bough an btc asic.. straight from china, this meant buying it from the chinese retailer. so i paid chinese sales tax at purchasing time. because it was a finished retail ready product it travelled through the normal ports to my country where by customs at my border contacted me about having to pay a tariff to release it from customs at my countries border and be delivered by parcel truck to my home. i paid it and got the delivery.
so china got the sales tax and the chinese manufacturer/retailer got the profit of selling the goods retail ready and my countries government got the tariff income

now imagine this
TSMC change business plan. they set up the final phase fabrication in the domestic country of the consumer. so that they can use the chinese labour to mine, refine and smelt silica into ingots. send the ingots as a unfinished part to their fabricator factory in consumers country via freeports. so that there are no tariffs
the chips are made and assembled.. and then sold as a finished retail ready product in the consumers home country, defining it as locally made.. thus no tariff allowing the consumer to buy from a local retailer cheaper (way cheaper than if whole process was done locally (unrefined silica -> chip))

so parts cost still low chinese labour costs, no tariff to pay, local sales tax means cheaper for consumer
thus best of both worlds for consumer
yes in freeport business model china does not get sales tax, chinese retailer does not get retail profit, and local gov does not get tariff but does get local sales tax

So... should I believe you, pretty much a know-it-all but know-nothing or Warren? Such a difficult decission.

[BADecker]

Trump is crashing the world economy. Stocks, markets, goods, everything is turning to shit & it’s only since he started all this tariff nonsense. He needs to STFU & negotiate with other leaders in private. He is causing a lot of people a lot of harm at the moment. I pray he stops this destruction soon.

It's not destruction. It's simply change, so that America becomes great, again. Seems like too many Americans are too dumb to see this, or are against a strong country, even though it would benefit them greatly.

[franky1]

businesses know how to get around tariffs and many businesses are already acting now to do so.

..
this has been said many times but there is an obvious peanut user that pretends not to learn and just creates a new topic to start the conversation off again as if its fresh information that he is yet to know or learn

so one last time for the other readers ready to learn.
there is a type of international distribution/logistics pathway called FREEPORTS

lets use TSMC(microchips) as primer example

a decade ago i bough an btc asic.. straight from china, this meant buying it from the chinese retailer. so i paid chinese sales tax at purchasing time. because it was a finished retail ready product it travelled through the normal ports to my country where by customs at my border contacted me about having to pay a tariff to release it from customs at my countries border and be delivered by parcel truck to my home. i paid it and got the delivery.
so china got the sales tax and the chinese manufacturer/retailer got the profit of selling the goods retail ready and my countries government got the tariff income

now imagine this
TSMC change business plan. they set up the final phase fabrication in the domestic country of the consumer. so that they can use the chinese labour to mine, refine and smelt silica into ingots. send the ingots as a unfinished part to their fabricator factory in consumers country via freeports. so that there are no tariffs
the chips are made and assembled.. and then sold as a finished retail ready product in the consumers home country, defining it as locally made.. thus no tariff allowing the consumer to buy from a local retailer cheaper (way cheaper than if whole process was done locally (unrefined silica -> chip))

so parts cost still low chinese labour costs, no tariff to pay, local sales tax means cheaper for consumer
thus best of both worlds for consumer
yes in freeport business model china does not get sales tax, chinese retailer does not get retail profit, and local gov does not get tariff but does get local sales tax

So... should I believe you, pretty much a know-it-all but know-nothing or Warren? Such a difficult decission.

how about learn about freeports all for yourself, by yourself, for yourself then you dont have to trust anyone else
its called DYOR

yep you and pooya in this P&S and economics sections, keep on having this silly belief to just be spoonfed by influencers quotes in social media.. but when prompted with words to research, instead of actually researching the uptodate information on things, you both just try to find some silly old secondary quote that backs up the primary recent quote from a emotionally charged bias social media quote made to be click bait, which has been spoonfed to you..

i really wish people would wipe away their preset biases whereby they only search for things that match their bias, and instead look into researching how the real world works by learning about things actually happening outside the spoonfed quote they read in social media

and yes that includes dont just blind trust me, it means actually take any info from any side but look beyond both sides and look at whats real and do research on whats real, not what backs up a side you favour

so go learn about freeports. realise there is a hidden reason that media want people to fear things when businesses are secretly moving around to take advantage of the fear

for instance we have all seen media shout fear stories when bitcoin price dips. yet we all know its discount opportunity before the actual natural rise, which bitcoin will always be moving towards(deflationary)

..
warren buffet does not have real worries, his main income earner and lovechild is coca-cola. and they have learned many lessons even as far back as ww2. they have production and distribution centres in many countries already set up, so he is all set

..
watch that video again.. but without taking it as a fear warning..
watch it closely.
watch how the video of a long interview has been snipped into a 20second fear-op (at the start to set a false tone)
then watch what warren actually says even though its been snipped(at the start)

"tariffs are actually, we have alot of experience with them"
"they're an act of war [chuckle chuckle] to some degree"

so he is actually laughing and saying to some degree.. he is not actually calling them out as a full on actual disastrous war. more like a international competition where there will be losers and winners..
listen to his chuckles and laughs, instead of the emotionally charged words "attacks" "war"

what the video does not say is that the winners use freeports, which send unfinished parts/ingredients between their business partners on different shores. to assemble/bottle/can a finished product to class it as made in the destination country to sell in the destination country tariff free, giving the destination of goods country the ability to sell the goods domestically thus collect the sales tax (the real tax countries actually care about)
tariffs are not the breadwinner/income earner target. they are the negotiation tools to get businesses more efficient and productive domestically and internationally

have you ever in EU/mid-east/asia(when on vacation or wherever you live(if not usa)) paid a tariff on coca-cola even though its 'american'. nope because he knows how to get around the tariffs when selling coca-cola internationally

now go learn freeports and find out how

[paxmao]

businesses know how to get around tariffs and many businesses are already acting now to do so.

..
this has been said many times but there is an obvious peanut user that pretends not to learn and just creates a new topic to start the conversation off again as if its fresh information that he is yet to know or learn

so one last time for the other readers ready to learn.
there is a type of international distribution/logistics pathway called FREEPORTS

lets use TSMC(microchips) as primer example

a decade ago i bough an btc asic.. straight from china, this meant buying it from the chinese retailer. so i paid chinese sales tax at purchasing time. because it was a finished retail ready product it travelled through the normal ports to my country where by customs at my border contacted me about having to pay a tariff to release it from customs at my countries border and be delivered by parcel truck to my home. i paid it and got the delivery.
so china got the sales tax and the chinese manufacturer/retailer got the profit of selling the goods retail ready and my countries government got the tariff income

now imagine this
TSMC change business plan. they set up the final phase fabrication in the domestic country of the consumer. so that they can use the chinese labour to mine, refine and smelt silica into ingots. send the ingots as a unfinished part to their fabricator factory in consumers country via freeports. so that there are no tariffs
the chips are made and assembled.. and then sold as a finished retail ready product in the consumers home country, defining it as locally made.. thus no tariff allowing the consumer to buy from a local retailer cheaper (way cheaper than if whole process was done locally (unrefined silica -> chip))

so parts cost still low chinese labour costs, no tariff to pay, local sales tax means cheaper for consumer
thus best of both worlds for consumer
yes in freeport business model china does not get sales tax, chinese retailer does not get retail profit, and local gov does not get tariff but does get local sales tax

So... should I believe you, pretty much a know-it-all but know-nothing or Warren? Such a difficult decission.

how about learn about freeports all for yourself, by yourself, for yourself then you dont have to trust anyone else
its called DYOR

yep you and pooya in this P&S and economics sections, keep on having this silly belief to just be spoonfed by influencers quotes in social media.. but when prompted with words to research, instead of actually researching the uptodate information on things, you both just try to find some silly old secondary quote that backs up the primary recent quote from a social media quote spoonfed to you..

i really wish people would wipe away their preset biases whereby they only search for things that match their bias, and instead look into researching how the real world works by learning about things actually happening outside the spoonfed quote they read in social media

and yes that includes dont just blind trust me, it means actually take any info from any side but look beyond both sides and look at whats real and do research on whats real, not what backs up a side you favour

so go learn about freeports. realise there is a hidden reason that media want people to fear things when businesses are secretly moving around to take advantage of the fear

for instance we have all seen media shout fear stories when bitcoin price dips. yet we all know its discount opportunity before the actual natural rise, which bitcoin will always be moving towards(deflationary)

..
warren buffet does not have real worries, his main income earner and lovechild is coca-cola. and they have learned many lessons even as far back as ww2. they have production and distribution centres in many countries already set up, so he is all set

..
watch that video again.. but without taking it as a fear warning..
watch it closely.
watch how the video of a long interview has been snipped into a 20second fear-op
then watch what warren actually says even though its been snipped

"tariffs are actually, we have alot of experience with them"
"there an act of war [chuckle chuckle] to some degree"

so he is actually laughing and saying to some degree.. he is not actually calling them out as a full on actual disastrous war. more like a international competition where there will be losers and winners

what the video does not say is that the winners use freeports, which send unfinished parts/ingredients between their business partners on different shores. to assemble/bottle/can a finished product to class it as made in the destination country to sell in the destination country tariff free

have you ever in EU/mid-east/asia paid a tariff on coca-cola even though its 'american'. nope because he knows how to get around the tariffs

now go learn freeports and find out how

It is not the first time you speak about free ports claiming to know how to avoid tariffs. So, let's follow throughL

Trump has a 25% tariff for European cars. How would you avoid it? That is, how is a US consumer going to buy his Mercedes made in Germany at the same price? And what about steel? You just take it to an US "free port" and magically it costs the same.

Sorry but I kind of still into that Buffet thing I mentioned?

[franky1]

It is not the first time you speak about free ports claiming to know how to avoid tariffs. So, let's follow throughL

Trump has a 25% tariff for European cars. How would you avoid it? That is, how is a US consumer going to buy his Mercedes made in Germany at the same price? And what about steel? You just take it to an US "free port" and magically it costs the same.

Sorry but I kind of still into that Buffet thing I mentioned?

engine made in non us country by mercedez international factory.(cheap labour, then sent to sister factory in US at cost)
tires made in non us country by mercedez international factory.(cheap labour, then sent to sister factory in US at cost)
battery made in non us country by mercedez international factory.(cheap labour, then sent to sister factory in US at cost)

parts sent to assembly(final phase) factory at a US freeport.
car finished/assembled in US factory of mercedez at the freeport
now classed as "US made" mercedez when it leaves the us factory

no more tariff even though the brand "mercedez" is german
europe no longer get sales tax because american car buyers, buy from a US domestic dealer instead of a european importer
dealers dont add on a tariff as car came from a US assembly factory
trump does not get 25% import tax but does get the dealerships sales tax

again you got me to spoon feed you.. but learn all about freeports for yourself.

learn that businesses are moving their final stage/assembly sections of their business to the us. they are not going to be doing the whole:
raw material US -> parts US -> finished product things all in america.

EG TSMC will do the asian silica, refine,smelt in a TSMC factories in asia
and send the formed ingots to america to be fabricated into 'US made' chips
and because its parts moving between same company, its not a final product sale to trigger a tariff on consumer or TSMC at the ingot moving stage
and then not a tariff triggering event on the consumer at the microchip retail sale as its "US made"

again you got me to spoon feed you.. but learn all about freeports for yourself.

[BADecker]

Trump is crashing the world economy. Stocks, markets, goods, everything is turning to shit & it’s only since he started all this tariff nonsense. He needs to STFU & negotiate with other leaders in private. He is causing a lot of people a lot of harm at the moment. I pray he stops this destruction soon.

You want Trump to stop? He's just getting started. Remember that the so-called prosperity you are talking about took a very long time - decades - to be set in place. And when you consider IRS taxes, these alone have destroyed Americans' ability to live prosperously. And when you look at the additional thing, USAID, you can see a bunch of criminal activity that is screwing Americans royally. And there is a lot more if you only look. Do you really want yourself or fellow Americans to continue to be screwed?

Trump is having success. Consider the following that are saving Americans money right now. Give it time to work.

Appeals court enables Musk to resume cuts at USAID

Final Cuts Will Eliminate U.S. Aid Agency in All but Name


Europe Waves The White Flag: EU Prepares "Term Sheet Of Concessions" For Trump Trade War


https://www.zerohedge.com/markets/europe-waves-white-flag-eu-prepares-term-sheet-concessions-trump-trade-war
In what may be the first clear confirmation Trump's plan to realign the global trader system is working, moments ago Bloomberg reported that the European Union is identifying concessions it's willing to make to Donald Trump's administration to secure the partial removal of the US tariffs that have already started hitting the bloc's exports and that are set to increase after April 2.  

According to Bloomberg, EU officials were told at meetings this week in Washington that there was no way to avoid new auto and so-called reciprocal tariffs that Trump is launching next week. Discussions also began on what the contours of a potential deal to reduce them should eventually look like.

That prompted the European Commission (which handles trade matters for the EU) to start working on a "term sheet" for a potential concession agreement, which would set out areas for negotiations on the punitive trade measures, including lowering its own duties, mutual investments with the US as well as easing certain regulations and standards.

In short, Europe - led these days by France's Macron - did what Europe always does when led by the French: it surrendered.

The reciprocal tariffs which will be unveiled on April 2 are meant to strike out against what Trump considers to be unfair levies on US goods as well as non-tariff barriers, such as domestic regulations and how countries collect taxes, including the bloc's value-added tax, digital taxes and regulations. The EU says its VAT is a fair, non-discriminatory tax that applies equally to domestic and imported goods (for more on the framework for Trump's reciprocal tariffs, see this).

The news, which is actually rather bad for Europe as it confirms the continent will be unable to retaliate fully and instead will be on the receiving end of Trump's trade war, sparked a brief rally in the Euro...
...


WAYNE ROOT: President Trump is the G.O.A.T. But There is One Thing Trump Has Not Done:


https://www.thegatewaypundit.com/2025/03/president-trump-is-g-o-t-there-is/
Remember the movie "City Slickers?"

Billy Crystal asked for the secret to life. Jack Palance said, "One Thing."

President Trump is the G.O.A.T. (the greatest of all-time). His first two months have been a work of art. My fans love him. But one thing is missing. One thing that matters above all else…

WHERE ARE THE ARRESTS?

Because I host national TV and radio shows, and a daily video podcast, I am blessed to receive thousands of emails from my fans. I am honored. I read every one of them.

That is what gives me my edge. I understand exactly what the American people are thinking, feeling and experiencing. Because I listen to the American people.

99% of politicians never read a single letter or email from their constituents. They get their advice from listening to fake news media and fake pollsters. Or they listen to donors, lawyers, lobbyists, economists and fellow DC politicians.

What a terrible mistake.

The American people are smart. Not book smart, or Harvard-degree-smart. But street smart. They see and feel exactly what's going on with this country, culture and economy. Because they're living it.

It pays to listen to the people like this.

The people who watch and listen to my shows remind me of my father David Root, a blue-collar butcher. He may not have had a college degree, but he was always right.

My fans are just like my dad- salt of the earth, middle class Americans. I value their opinions more than any Wall Street hedge fund manager, Silicon Valley CEO, powerful politician, or media mogul.

The American people are smarter than all of them.

So, what are all these thousands of emails I get from average middle class Americans telling me? Here goes…

They all love and appreciate President Trump. They believe he is the greatest president of our lifetime- maybe ever. They believe he is the only politician of their lifetimes on their side. They trust he really does want to make America great again.
...

[franky1]

Trump is crashing the world economy. Stocks, markets, goods, everything is turning to shit & it’s only since he started all this tariff nonsense. He needs to STFU & negotiate with other leaders in private. He is causing a lot of people a lot of harm at the moment. I pray he stops this destruction soon.

oh come on
when bitcoin corrects after a ATH, do you scream 'crash', 'turn to shit', 'harmful', 'destruction'
or are you seeing 'discount','correction to value', 'buying opportunity'

when markets dip, it is the best opportunity to look into investing, not fear it
wake up to the opportunity

[Hispo]

Trump is crashing the world economy. Stocks, markets, goods, everything is turning to shit & it’s only since he started all this tariff nonsense. He needs to STFU & negotiate with other leaders in private. He is causing a lot of people a lot of harm at the moment. I pray he stops this destruction soon.

Honestly, I don't understand why he is doing all of this, as if he was some kind of foreign assets which seeks to weaken the west and the allies of the United States.
The logic behing his tariff war is that he will be able to make all goods and services to be made in the United States so the country can somehow become more self-suficient, but that would imply also an increase in the costs of those goods, American labor is definitely more expensive than Asian labor. So I don't know what Trump is playing...
At least with Biden there was some sense of stability within the stock market and there was no chaos between The United States and Canada.

[suchmoon]

So... should I believe you, pretty much a know-it-all but know-nothing or Warren? Such a difficult decission.

Franky learned a new word, "freeport". Let him have some fun with it and by no means ever try to ask how many of these "freeports" with TSMC or Mercedes factories in them actually exist in the US.

Not at all related to BADeckers "freeman" fantasy.

[Die_empty]

Honestly, I don't understand why he is doing all of this, as if he was some kind of foreign assets which seeks to weaken the west and the allies of the United States.
The logic behing his tariff war is that he will be able to make all goods and services to be made in the United States so the country can somehow become more self-suficient, but that would imply also an increase in the costs of those goods, American labor is definitely more expensive than Asian labor. So I don't know what Trump is playing...
At least with Biden there was some sense of stability within the stock market and there was no chaos between The United States and Canada.

Increasing the industrial sector of the US is one of the reasons Donald Trump claims for the tariff and another one is an unfavorable balance of payments. He feels that the US is buying more from most of its trading partners, while they import less for the US. He wants these countries to buy more from the US so that the trading deficit will be minimal.

In order to stop this tariff war, Mexico, Canada, and the EU have some major roles to play. They would have to diversify their trading partnerships or be forced to buy expensive products from the US. The US also needs to make its goods cheaper if it wants to increase exports.

[franky1]

So... should I believe you, pretty much a know-it-all but know-nothing or Warren? Such a difficult decission.

Franky learned a new word, "freeport". Let him have some fun with it and by no means ever try to ask how many of these "freeports" with TSMC or Mercedes factories in them actually exist in the US.

i learned about freeports years ago.. tariffs years ago.. its the media that are playing catch up because its obvious that people these days dont know how tariff's or customs ports work nor freeports

many businesses do.. and many business have been using freeports for years, and some seen no benefit until now

a freeport is a port / border access point .. but with different customs policies about cross border processes
and whilst there are warehouses and factories within the confines of the freeports boundaries, those factories fall within the customs of the freeport

there are nearly 300 freeports in the us and many of them 70% is about manufacturing(final assembly) whilst 30% is mainly just distribution
the UK went through its own tariff war and then move to the freeport business model due to brexit, and other countries before that due to their own international relations changes. its not new. its just not talked about alot in media, which causes all this nonsense fear factor clickbait stuff

you know the clickbait..
the type where some people only hear "act of war" whilst others hear "to some degree [chuckle]"
and where it requires people to actually understand the "some degree" part to know how businesses are avoiding tariff wars

anyway buffet is not worried, his coca cola investments are safe, he already has international distribution centres across the planet, canning and bottling coca cola, which is why you have never been charged a tariff to buy the fizzy american drink when at home or abroad

[paxmao]

It is not the first time you speak about free ports claiming to know how to avoid tariffs. So, let's follow throughL

Trump has a 25% tariff for European cars. How would you avoid it? That is, how is a US consumer going to buy his Mercedes made in Germany at the same price? And what about steel? You just take it to an US "free port" and magically it costs the same.

Sorry but I kind of still into that Buffet thing I mentioned?

engine made in non us country by mercedez international factory.(cheap labour, then sent to sister factory in US at cost)
tires made in non us country by mercedez international factory.(cheap labour, then sent to sister factory in US at cost)
battery made in non us country by mercedez international factory.(cheap labour, then sent to sister factory in US at cost)

parts sent to assembly(final phase) factory at a US freeport.
car finished/assembled in US factory of mercedez at the freeport
now classed as "US made" mercedez when it leaves the us factory

no more tariff even though the brand "mercedez" is german
europe no longer get sales tax because american car buyers, buy from a US domestic dealer instead of a european importer
dealers dont add on a tariff as car came from a US assembly factory
trump does not get 25% import tax but does get the dealerships sales tax

again you got me to spoon feed you.. but learn all about freeports for yourself.

learn that businesses are moving their final stage/assembly sections of their business to the us. they are not going to be doing the whole:
raw material US -> parts US -> finished product things all in america.

EG TSMC will do the asian silica, refine,smelt in a TSMC factories in asia
and send the formed ingots to america to be fabricated into 'US made' chips
and because its parts moving between same company, its not a final product sale to trigger a tariff on consumer or TSMC at the ingot moving stage
and then not a tariff triggering event on the consumer at the microchip retail sale as its "US made"

again you got me to spoon feed you.. but learn all about freeports for yourself.

So... thanks for "spoon feeding" but I need to complaint about the taste of the food, I mean, tastes like sh*t.

Example, "all they have to do is relocate to the US" - Have you stopped to think why they are producing somewhere else? Could it be because is cheaper, faster, better?

"Moving inside the same company" - that is super funny. If the US is not charging for anything it is because they do no want to charge for it - it would be perfectly doable, legal and quick to implement. Any "exception", "free trade", "alternatives" are there only while the governments choose to leave them there - eg exemptions to small imports from China or the like.

Just to make it clear for you:

a) Import - The consumer pays tariffs.
b) Relocate - The company pays CAPEX and huge costs, which have to be passed to consumers.
c) Produce locally - The consumers have to pay the inneficiency of producing in US to local inefficient producers.

To your example:

Basically you say that you are going to import all the parts and assemble them in the US. Currently they are assembled in Germany so "all Mercedes has to do is relocate to the US" and then import the parts. ?

- Mercedes assembles (moslty) in Germany because is cheaper, faster, better or all at the time due to workforce, salaries, unions, energy and most of all, the technical ecosystem. You relocate to the US, you product becomes more expensive, worse or undoable. - guess who pays.

- Mercedes would need to relocate or buy new assembly lines. That has a huge CAPEX cost - guess who pays (hint, not the Tooth Fairy).

- Next day, Trump wakes up and decides to cancel a "Freeport" or put extra tax on imported parts or decide that assembly is not enough or requires more than 60% value added or whatever. - guess who pays.

 Adding to that, the parts are not made in one country. Inthe case of Mexico and Canada, they cross the border several times - that is why car makers had to force Trump into removing tariffs for them. Most other industries are the same.

I think you should look for discussion that are more into your level of understanding. Like... I don't know... Cowmilk versus Goat milk, double sheet toilet paper versus single...

[Kelward]

Trump's increased tariff is to reduce the Americans patronage of foreign goods, it wouldn't be a bad idea if American manufacturers will produce similar products at affordable prices. If Americans cannot get the same value for similar products in their own country, that means that the high tariffs will be a burden on the consumers. If a leader will make a policy that will affect it's citizens negatively where they will have to pay more due to high tariffs, it doesn't make sense. America, is a developed country, and there should be a good reason why they patronize foreign products, perhaps they were cheap.

[franky1]

"Moving inside the same company" - that is super funny. If the US is not charging for anything it is because they do no want to charge for it - it would be perfectly doable, legal and quick to implement. Any "exception", "free trade", "alternatives" are there only while the governments choose to leave them there - eg exemptions to small imports from China or the like.

Just to make it clear for you:

a) Import - The consumer pays tariffs.
b) Relocate - The company pays CAPEX and huge costs, which have to be passed to consumers.
c) Produce locally - The consumers have to pay the inneficiency of producing in US to local inefficient producers.

To your example:

Basically you say that you are going to import all the parts and assemble them in the US. Currently they are assembled in Germany so "all Mercedes has to do is relocate to the US" and then import the parts. ?

- Mercedes assembles (moslty) in Germany because is cheaper, faster, better or all at the time due to workforce, salaries, unions, energy and most of all, the technical ecosystem. You relocate to the US, you product becomes more expensive, worse or undoable. - guess who pays.

- Mercedes would need to relocate or buy new assembly lines. That has a huge CAPEX cost - guess who pays (hint, not the Tooth Fairy).

- Next day, Trump wakes up and decides to cancel a "Freeport" or put extra tax on imported parts or decide that assembly is not enough or requires more than 60% value added or whatever. - guess who pays.

 Adding to that, the parts are not made in one country. Inthe case of Mexico and Canada, they cross the border several times - that is why car makers had to force Trump into removing tariffs for them. Most other industries are the same.

I think you should look for discussion that are more into your level of understanding. Like... I don't know... Cowmilk versus Goat milk, double sheet toilet paper versus single...

oh my gosh.. you are making crap up now and doing it for weeks now to avoid doing any actual research or running things through scenarios to see how things actually play out

seriously you have been asked to research a simple subject, yet you instead just hit the forum reply button without doing any research or independent thought. just to sound silly each time

please do not reply to this message until you have done some research

now lets make it easy for you

..
you gave the example of capital expenditure(capex)
firstly
many ports already own the land and have set up the legal boundaries and legality of customs regulations decades ago. they have also already built empty facilities which they can lease out

this means mercedez does not need to capex a new-build facility for the entire production line from raw material to finished car.. instead they lease a pre-built building and only need to lease a footprint amount of space for the final assembly section. thus less space/footprint needed
this also means they can be up and running in months rather than years

you gave an example of mercedez
(i wont go through all the details. as i think you should try for once to research and do some work yourself)

so a US consumer buying from a german importer situation PRE april:
lets say a mercedez costs €40k retail ($43288)
add on the EU VAT(sales tax 19%) €7600=€47600 ($51500)
add on the shipping cost $3k* ($54500)
(* cargo damage insurance is higher for finished car compared to wrapped/packaged/crated parts)
(* shipping container can only fit 1 car)

so a US consumer buying from a german importer german built car, normal customs border situation from april+:
lets say a mercedez costs €40k retail ($43288)
add on the EU VAT(sales tax 19%) €7600=€47600 ($51500)
add on the shipping cost $3k* ($54500) (*cargo damage insurance is higher for finished car compared to wrapped/packaged/crated parts)
add on the 25% tariff $13,625 ($68,125)

so a US consumer buying from US dealer of a mercedez final assembly in US from international parts:
lets say a mercedez PARTS costs €36k wholesale -10% retail ($39,240)
no VAT €0=€36k ($39,240)
add on the shipping cost $900* ($40,140)
no 25% tariff $0 ($40,140)
use US steel for chassis and put US VIN number on the chassis $2k ($42,140)
assemble part in the US $2000 ($44,140)
add +10% wholesale-retail profit $4,404 ($48,554)
US sales tax 5% ($50,981)
(*cargo damage insurance is lower. also instead of 1 car per shipping container they can package parts enough for multiple cars in one container)

soo your choice of payment, what would you want to pay
$54500...  $68,125... $50,981

oh just to add a lil extra poke
to ensure the import meets US emission tests and other US safety standards extra costs are added on to a ready made import
but im feeling your mind is already at capacity of numbers and total costs and total outcome prices

pre-empting responses:
1. stating the obvious: yes the cost of import will rise from 54.5k to 68.125k due to tariffs..
    - but using freeport and US assembly the retail price of mercedez can be alot lower than pre april import

2. yes ofcourse a US mercedez dealership will get greedy and want more then just 10% of wholesale-retail.
    - so expect it to be above $51k at US dealership.. but still going to be better than $55k-$68k

3. scenario A EU(germany) gets €7.6k sales tax US gets $0
    scenario B EU(germany) gets €7.6k sales tax US gets $13,625 tariff (normal customs port) US gets $0 sales tax
    scenario C EU(germany) gets €0 sales tax US gets $0 tariff (free-port) US gets $2,427.70 sales tax

4. shipping costs.the final car imported is ~$3k due to one car in container and the insurance premium
   - however a container of parts can rack, stack, and pack enough parts for 5 vehicles and not has as high an isurance premium
   - this means chipping cost per car would be lower, such as $900

5. US steel price for 1tonne chassis $1.5k.. plus cutting&welding and vin engraving $500

now go do some research and run some numbers and realise a few things

[paxmao]

"Moving inside the same company" - that is super funny. If the US is not charging for anything it is because they do no want to charge for it - it would be perfectly doable, legal and quick to implement. Any "exception", "free trade", "alternatives" are there only while the governments choose to leave them there - eg exemptions to small imports from China or the like.

Just to make it clear for you:

a) Import - The consumer pays tariffs.
b) Relocate - The company pays CAPEX and huge costs, which have to be passed to consumers.
c) Produce locally - The consumers have to pay the inneficiency of producing in US to local inefficient producers.

To your example:

Basically you say that you are going to import all the parts and assemble them in the US. Currently they are assembled in Germany so "all Mercedes has to do is relocate to the US" and then import the parts. ?

- Mercedes assembles (moslty) in Germany because is cheaper, faster, better or all at the time due to workforce, salaries, unions, energy and most of all, the technical ecosystem. You relocate to the US, you product becomes more expensive, worse or undoable. - guess who pays.

- Mercedes would need to relocate or buy new assembly lines. That has a huge CAPEX cost - guess who pays (hint, not the Tooth Fairy).

- Next day, Trump wakes up and decides to cancel a "Freeport" or put extra tax on imported parts or decide that assembly is not enough or requires more than 60% value added or whatever. - guess who pays.

 Adding to that, the parts are not made in one country. Inthe case of Mexico and Canada, they cross the border several times - that is why car makers had to force Trump into removing tariffs for them. Most other industries are the same.

I think you should look for discussion that are more into your level of understanding. Like... I don't know... Cowmilk versus Goat milk, double sheet toilet paper versus single...

oh my gosh.. you are making crap up now and doing it for weeks now to avoid doing any actual research or running things through scenarios to see how things actually play out

seriously you have been asked to research a simple subject, yet you instead just hit the forum reply button without doing any research or independent thought. just to sound silly each time

please do not reply to this message until you have done some research

now lets make it easy for you

..
you gave the example of capital expenditure(capex)
firstly
many ports already own the land and have set up the legal boundaries and legality of customs regulations decades ago. they have also already built empty facilities which they can lease out

this means mercedez does not need to capex a new-build facility for the entire production line from raw material to finished car.. instead they lease a pre-built building and only need to lease a footprint amount of space for the final assembly section. thus less space/footprint needed
this also means they can be up and running in months rather than years

you gave an example of mercedez
(i wont go through all the details. as i think you should try for once to research and do some work yourself)

so a US consumer buying from a german importer situation PRE april:
lets say a mercedez costs €40k retail ($43288)
add on the EU VAT(sales tax 19%) €7600=€47600 ($51500)
add on the shipping cost $3k* ($54500)
(* cargo damage insurance is higher for finished car compared to wrapped/packaged/crated parts)
(* shipping container can only fit 1 car)

so a US consumer buying from a german importer german built car, normal customs border situation from april+:
lets say a mercedez costs €40k retail ($43288)
add on the EU VAT(sales tax 19%) €7600=€47600 ($51500)
add on the shipping cost $3k* ($54500) (*cargo damage insurance is higher for finished car compared to wrapped/packaged/crated parts)
add on the 25% tariff $13,625 ($68,125)

so a US consumer buying from US dealer of a mercedez final assembly in US from international parts:
lets say a mercedez PARTS costs €36k wholesale -10% retail ($39,240)
no VAT €0=€36k ($39,240)
add on the shipping cost $900* ($40,140)
no 25% tariff $0 ($40,140)
use US steel for chassis and put US VIN number on the chassis $2k ($42,140)
assemble part in the US $2000 ($44,140)
add +10% wholesale-retail profit $4,404 ($48,554)
US sales tax 5% ($50,981)
(*cargo damage insurance is lower. also instead of 1 car per shipping container they can package parts enough for multiple cars in one container)

soo your choice of payment, what would you want to pay
$54500...  $68,125... $50,981

oh just to add a lil extra poke
to ensure the import meets US emission tests and other US safety standards extra costs are added on to a ready made import
but im feeling your mind is already at capacity of numbers and total costs and total outcome prices

pre-empting responses:
1. stating the obvious: yes the cost of import will rise from 54.5k to 68.125k due to tariffs..
 Â   - but using freeport and US assembly the retail price of mercedez can be alot lower than pre april import

2. yes ofcourse a US mercedez dealership will get greedy and want more then just 10% of wholesale-retail.
 Â   - so expect it to be above $51k at US dealership.. but still going to be better than $55k-$68k

3. scenario A EU(germany) gets €7.6k sales tax US gets $0
    scenario B EU(germany) gets €7.6k sales tax US gets $13,625 tariff (normal customs port) US gets $0 sales tax
    scenario C EU(germany) gets €0 sales tax US gets $0 tariff (free-port) US gets $2,427.70 sales tax

4. shipping costs.the final car imported is ~$3k due to one car in container and the insurance premium
 Â  - however a container of parts can rack, stack, and pack enough parts for 5 vehicles and not has as high an isurance premium
 Â  - this means chipping cost per car would be lower, such as $900

5. US steel price for 1tonne chassis $1.5k.. plus cutting&welding and vin engraving $500

now go do some research and run some numbers and realise a few things

While claiming that I have to do research, you are charging EU VAT on a item for export? Dude... stop pretending, really, not even the basics... No wonder you are confused.

So situation pre-April and post-April: You basically prove my point, except that you make basic calculation mistakes for a value of 19%.

Situation with "assembly in the US": Your premise is false: The biggest and most obvious mistake is considering that assembling in the US will cost less or equal than in Germany. For that you are ignoring all I have previous said:

a) You are ignoring all the cost of relocation, extra CAPEX required by the company to move assembly to the US.
b) You are ignoring that US assembly will be worse, more expensive and less efficient. You arbitrarily use 2000.
c) Sometimes simply un-doable due to skills, ecosytems...

There is a good reason why the items are assembled elsewhere, as there are a good reasons why Warren Buffet is a billionaire and you are... well, "Franky".

 https://www.cargroup.org/the-move-to-assemble-vehicles-in-mexico-is-about-more-than-low-wages/