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346 points Kye | 2 comments | | HN request time: 0s | source
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favflam ◴[] No.45016762[source]
This situation feels dumb. I feel like I am watching idiots cheer on someone doing parkor and that person getting his teeth smashed on a wall. Like, what is the point?
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philwelch ◴[] No.45016833[source]
De minimis allows people to evade tariffs by simply drop shipping each individual product all the way from China or wherever, so long as the retail price is below the threshold. I’m skeptical of tariffs in general but if you’re going to have them, it makes sense to close the loopholes.
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someotherperson ◴[] No.45016951[source]
So execute it for China alone. The issue is that these blanket actions are lazy at best and exclusively populist.
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timr ◴[] No.45017191{3}[source]
> So execute it for China alone. The issue is that these blanket actions are lazy at best and exclusively populist.

Same argument. If there's a country that doesn't get tariffs, that country will very quickly become the leading global exporter to the US. It's the same thing for the "penguin island" that everyone mocked: if you put high tariffs on every place but penguin island, it will soon be Penguin Island Logistics Center.

Setting aside judgment of the tariff policy and the chaotic implementation, it does make sense to make them blanket actions. Much of the byzantine nature of our existing supply chains is due to gaming of international tariff policy.

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1. Symbiote ◴[] No.45022871{4}[source]
Exports have a country of origin declared.

If I post something from Denmark to Canada, they want to know the origin of the goods. If it's China, the China tariffs (if any) apply rather than the Denmark/EU ones.

If the declaration is incorrect, the goods can be siezed or returned.

Penguin Island is a nature preserve (the whole thing), no one is building anything.

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2. timr ◴[] No.45030302[source]
The words you're looking for are "substantial transformation" [1].

Exporters in country A (with high tariffs on exports to USA) ship partially completed products to country B (with no/lower tariffs to USA), and then do some manufacturing step. Country B then exports completed products to USA.

China was doing this extensively via Mexico under the USMCA [2]. It's not a matter of debate.

[1] https://www.trade.gov/rules-origin-substantial-transformatio...

[2] https://www.youtube.com/watch?v=5i3Y14TNqCI