Current Events > Farmer learns that he has to pay for Tariffs, not Canada.

(+) Yeah! (+)

Whatever contract he signed doesn't include the tariffs/taxes the US government imposes for using a product that crosses the border.

Only he pays that.

Link_of_time posted...

Some wanna explain to me how this one works? I understand the basic concept of tariffs, but if he did have a contract stating the price; I'm a little lost. I imagine the contract has a section relaying this outcome.

It's kinda the opposite. Contracts don't account for something like tariffs unless they specifically say they do. Unless the contract specifically spells out shipping conditions and who is responsible for tariffs, there's no expectation that the cost would be ignored. Thus, it would fall on the one importing the product, since crossing the border is what is bringing that cost on.

HashtagSEP posted...

It's kinda the opposite. Contracts don't account for something like tariffs unless they specifically say they do. Unless the contract specifically spells out shipping conditions and who is responsible for tariffs, there's no expectation that the cost would be ignored. Thus, it would fall on the one importing the product, since crossing the border is what is bringing that cost on.

Right. And maybe moving forward contracts will outline that, but anything signed pre January 2025 won't include it since the whole point of NAFTA/USMCA was free trade.

jefffan posted...

Right. And maybe moving forward contracts will outline that, but anything signed pre January 2025 won't include it since the whole point of NAFTA/USMCA was free trade.

I doubt Canadian business or any foreign business is going to sign a contract to eat the tariff cost. Tariffs are going to hurt Americans far more than foreign countries.

Link_of_time posted...

Some wanna explain to me how this one works? I understand the basic concept of tariffs, but if he did have a contract stating the price; I'm a little lost. I imagine the contract has a section relaying this outcome.

Let's say the contract stated that the farmer was paying the Canadian company $50. With tariffs the farmer is still paying the Canadian company $50, just now the United States government is also charging the farmer to buy from the Canadian company.

Tmaster148 posted...

I doubt Canadian business or any foreign business is going to sign a contract to eat the tariff cost. Tariffs are going to hurt Americans far more than foreign countries.

This, nobody is going to sign a deal to pay your taxes for you if they go up. These sorts of agreements are so if the exporters costs go up that your price stays stable but in this situation the exporters costs didn't change, what changed was the importers cost and the exporter isn't responsible for that.

Say your farm hand Bob is off sick and you now need to pay Jake overtime to get that shipment put into storage, is your supplier responsible for that increase in your operating costs? Of course not.

Tmaster148 posted...

I doubt Canadian business or any foreign business is going to sign a contract to eat the tariff cost. Tariffs are going to hurt Americans far more than foreign countries.

Right. My only point they'll probably be a big bold section that basically says "Any applicable tariffs, taxes, duties, will be paid by importer upon receipt."

Really gotta make it known for these MAGA dumbasses lol

jefffan posted...

Whatever contract he signed doesn't include the tariffs/taxes the US government imposes for using a product that crosses the border.

Only he pays that.

Even if he had signed a contract including the tariffs, he would still have to pay the higher amount that he apparently can't afford. Canada is never going to be the one paying the tariffs in this scenario.

Tariffs DO NOT hurt the country doing the exporting unless the country doing the importing actually has enough industry on its own to not rely on imports. This isn't the case in the US, and it probably never will be, because as soon as Trump is out of office the next president will revert all these tariffs because the only thing they do is hurt American businesses.

How can people still not know what tariffs are...

rick_alverado posted...

Let's say the contract stated that the farmer was paying the Canadian company $50. With tariffs the farmer is still paying the Canadian company $50, just now the United States government is also charging the farmer to buy from the Canadian company.

ok, thx.

I was mostly confused about when the tariff was applied. I always assumed it was tacked onto the supplier/producer at border. Who would just raise their prices, thus passing the cost down the line, eventually taxing the customer. This line of thought is likely what the farmer thought, as a contract with an agreed upon price shouldn't allow this.

__starsnostars posted...

How can people still not know what tariffs are...

Tbf, Trump still doesn't know what they are. It's fair to assume there are others just as clueless.

If he voted for Trump he deserves destitution.

Sandalorn posted...

Na, I don't have to nor want to "get along" with literal Nazis and MAGAs.

Never did I say that you should get along with Nazis or MAGA. What the fuck are you talking about? There is absolutely no way my post could be interpreted that way.