There are a few businesses that have said that they will, but it's up to them. Otherwise, the cost of goods for the importer was lower than they expected, so their profit is retrospectively higher...
There are a few businesses that have said that they will, but it's up to them.
Otherwise, the cost of goods for the importer was lower than they expected, so their profit is retrospectively higher than it was.
That's a counterfactual claim and it depends on what you're assuming for the alternative scenario. What prices would they have charged if there were no tariffs? I'm assuming they would have been...
That's a counterfactual claim and it depends on what you're assuming for the alternative scenario. What prices would they have charged if there were no tariffs? I'm assuming they would have been lower, so revenue would have been lower. But maybe they would have sold more at a lower price?
By the companies own market research per unit sales would not only be lower, but lower enough that it would outweigh the increase in per unit costs. Otherwise they would have raised the price to...
By the companies own market research per unit sales would not only be lower, but lower enough that it would outweigh the increase in per unit costs. Otherwise they would have raised the price to that point.
Not sure which company or what research you're talking about. This is getting rather theoretical and hypothetical. I imagine it varies by company and what market they're in.
Not sure which company or what research you're talking about. This is getting rather theoretical and hypothetical. I imagine it varies by company and what market they're in.
It’s a broad and theoretical process. Just from a basis perspective, is it beneficial for any company for the US government to randomly apply a large per-unit tax and to then refund it to you a...
It’s a broad and theoretical process.
Just from a basis perspective, is it beneficial for any company for the US government to randomly apply a large per-unit tax and to then refund it to you a year later? Would that make your net profit go up?
If it does, why not just “tax” yourself, buy some T bonds with the “taxes”, then “pay” yourself back in a year?
It’s like financial perpetual motion. Money just sloshed around, but some is lost to friction.
Okay, but another way to model a tariff that gets refunded is that it's as if a cartel agreed to temporarily raise prices. Monopoly profit margins generally are higher than profit margins in...
Okay, but another way to model a tariff that gets refunded is that it's as if a cartel agreed to temporarily raise prices. Monopoly profit margins generally are higher than profit margins in competitive markets. Competition is what keeps prices closer to costs.
If you did pay for the tariffs directly as an independent importer (most likely from smaller e-commerce sites or D2C websites like temu, which would manifest as a bill UPS or FedEx or whatever...
If you did pay for the tariffs directly as an independent importer (most likely from smaller e-commerce sites or D2C websites like temu, which would manifest as a bill UPS or FedEx or whatever hands you) you would also have a claim.
The order, issued by Judge Richard K. Eaton of the United States Court of International Trade, amounted to an early victory for the thousands of businesses that have already sued to recover the taxes they paid, plus interest, now that President Trump’s global tariffs have been struck down. Last month, the Supreme Court ruled that Mr. Trump could not use the International Emergency Economic Powers Act, or IEEPA, to impose tariffs on U.S. trading partners.
Many trade lawyers said they were still deciphering the scope of the judge’s three-page directive. But they generally agreed that its mandate could prove short lived, with the Trump administration expected to quickly challenge it. Judge Eaton has scheduled a hearing in the case for Friday.
[...]
Judge Eaton appeared to deliver an early warning shot to the Trump administration in one of the lesser-noticed cases. His short order essentially opened with a declaration that “all importers of record” that paid taxes under Mr. Trump’s emergency tariffs were “entitled to the benefit” of the Supreme Court’s decision that those duties were illegal.
[...]
Judge Eaton also ordered the Trump administration to stop calculating importers’ tariff bills based on the emergency duties that have been declared illegal. The government by its own admission has continued to do so as part of the final closeout process for goods brought into the United States over the past year.
Judge Eaton further appeared to apply the same requirement to certain imports that already had their tariff bills finalized in the process known as liquidation, though lawyers disagreed on the scope of what the court had mandated.
lol of course businesses will get refunds but what about people who paid tariffs themselves?
There are a few businesses that have said that they will, but it's up to them.
Otherwise, the cost of goods for the importer was lower than they expected, so their profit is retrospectively higher than it was.
Higher than it would be without the tariff refund but lower than it would have been if the tariffs never existed at all.
That's a counterfactual claim and it depends on what you're assuming for the alternative scenario. What prices would they have charged if there were no tariffs? I'm assuming they would have been lower, so revenue would have been lower. But maybe they would have sold more at a lower price?
By the companies own market research per unit sales would not only be lower, but lower enough that it would outweigh the increase in per unit costs. Otherwise they would have raised the price to that point.
Not sure which company or what research you're talking about. This is getting rather theoretical and hypothetical. I imagine it varies by company and what market they're in.
It’s a broad and theoretical process.
Just from a basis perspective, is it beneficial for any company for the US government to randomly apply a large per-unit tax and to then refund it to you a year later? Would that make your net profit go up?
If it does, why not just “tax” yourself, buy some T bonds with the “taxes”, then “pay” yourself back in a year?
It’s like financial perpetual motion. Money just sloshed around, but some is lost to friction.
Okay, but another way to model a tariff that gets refunded is that it's as if a cartel agreed to temporarily raise prices. Monopoly profit margins generally are higher than profit margins in competitive markets. Competition is what keeps prices closer to costs.
If you did pay for the tariffs directly as an independent importer (most likely from smaller e-commerce sites or D2C websites like temu, which would manifest as a bill UPS or FedEx or whatever hands you) you would also have a claim.
From the article:
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