Post tariff world

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o0norton0o said:
.. ;)

The idea that tariffs protect a nation's domestically manufactured products within their home market seems to be clearly obvious or else why would all these countries that are exporting so much stuff to our market all have tariffs on our imports into their country??.... Is that too simple to understand?
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Just to clarify, Canada is the largest trading partner of the US. We export a lot to the US and buy more from the US than any other country does. We buy more from the US than France, the UK, China and Japan combined.
For 37 years that trading arrangement has all been tariff free in both countries, with the exception of lumber. Other than on Lumber, and that tariff is only on the US side, neither country had protective tariffs in place. This agreement was originally called the North American Free Trade agreement. It was negotiated by Ronald Reagan and Brian Mulroney ( Canadian PM) Both leaders believed in free trade. Mexico also signed that deal.
Lumber was dealt with separately. For awhile now, the US has been adding a tariff of 14.5 % onto Canadian lumber imports. I believe the US feels that CDN stumpage rates are too low so they added a tariff. Canada never added a tariff on US lumber. Not much US lumber goes north anyhow, for a variety of reasons, mainly price but also quality.

Later on, during Trumps first term, he decided that Nafta should be renegotiated. That resulted in CUSMA, which he negotiated and signed. It is a very similar Free Trade agreement to NAFTA.
Living 1000 ft from the US Border and having Lynden, Washington as our closest town, I have made good use of both Free Trade agreements.

But yeah, it was a shock to go from zero Tariffs in both countries to this sudden 25% and then the added threat of being told by President Trump that our economy would be broken by his tariffs and that our country will be annexed by the US.
That first part is only money, not great and certainly a contravention of the signed agreement, but it's the last part that really gets folks worked up, hopefully everyone can understand why.
 
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o0norton0o said:
You don't realize how big a trillion is...

1 million seconds is 11.5 days ago. You were less than 2 weeks younger

1 billion seconds is 32 years ago. You were a much younger person

1 trillion seconds is 32,000 years ago.......
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That is an eye opener for sure! Thx, yes it does seem that the word trillion has been thrown around in an unsettling cavalier way lately. This does put a better perspective on things. Cj
 
worntorn said:
Just to clarify, Canada is the largest trading partner of the US. We export a lot to the US and buy more from the US than any other country does. We buy more from the US than France, the UK, China and Japan combined.
For 37 years that trading arrangement has all been tariff free in both countries, with the exception of lumber. Other than on Lumber, and that tariff is only on the US side, neither country had protective tariffs in place. This agreement was originally called the North American Free Trade agreement. It was negotiated by Ronald Reagan and Brian Mulroney ( Canadian PM) Both leaders believed in free trade. Mexico also signed that deal.
Lumber was dealt with separately. For awhile now, the US has been adding a tariff of 14.5 % onto Canadian lumber imports. I believe the US feels that CDN stumpage rates are too low so they added a tariff. Canada never added a tariff on US lumber. Not much US lumber goes north anyhow, for a variety of reasons, mainly price but also quality.

Later on, during Trumps first term, he decided that Nafta should be renegotiated. That resulted in CUSMA, which he negotiated and signed. It is a very similar Free Trade agreement to NAFTA.
Living 1000 ft from the US Border and having Lynden, Washington as our closest town, I have made good use of both Free Trade agreements.

But yeah, it was a shock to go from zero Tariffs in both countries to this sudden 25% and then the added threat of being told by President Trump that our economy would be broken by his tariffs and that our country will be annexed by the US.
That first part is only money, not great and certainly a contravention of the signed agreement, but it's the last part that really gets folks worked up, hopefully everyone can understand why.
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Yeah, Trump knows how to stir up shit. Most of the time I think he's playing the media by saying outrageous things like "canada is gonna be the 51st state and maybe he'll let Trudeau be the governor".

Maybe all you people in Canada could "learn to code"..... 😏

.
 
Currently we have orders with US companies, and we as you know have ordered parts for many years from US companies. We usually pay a tariff rate 2.5 - 2.75% on parts for classic motorcycles coming from the USA, I believe this was the case for parts from the UK into the USA, but now it's 10%, or is it. To be very clear on why the US administration is lacking in their knee jerk tariff introduction we still don't have answers for the following -
1. Are tariffs collected on the small value parcels - in the past these were exempt, but not since Saturday it seems. Many owners will not have seen this as the level was around $39.00 I believe.
2. A complete gearbox for a classic Norton will it attract 25% as an automotive part, or 10% as a kit.
3. Most motorcycle parts are steel and aluminium, will the tariffs on steel and aluminium apply.
4. Will trade customers in the USA be able to order parts and they arrange payment for the tariff like the system used in many other countries.
 
And yet more confusion. Classic vehicles and their parts will subject to new tariffs being considered for introduction on the 3rd May. It is looking like the classic vehicles over 25 years old will be zero rated, but there is uncertainty about the the spares for these classic vehicles as whether these will be 0% 10% or 25%.

Currently as it still stands it is 10% for everything crossing the border into the USA unless exempt like gold and silver.
 
Tarifs traditionally have been a way of protecting domestic production or encouraging new domestic production. One of the many odd things about the current trade war is the taxing of things the US uses but does not produce - bananas, tea, coffee….
If there was a coherent policy in place then there would be long lists of exemptions. Instead there’s a list of numbers which seem to be based on an extremely simplistic deficit calculation,

I’ve just seen a quote from a Republican senator who seems to be saying that the US should simply stop importing and make everything inside the US. It’s going from bad to worse rapidly
 
concours said:
Here is an example of the trade rules US residents have been dealing with.




France erroneously charged (warranty service return) the receiving vendor 230 euros on a return of shocks that originally cost 900 euros.
Plucked it from their account.
Pretty heavy percentage there.


(Snip of a lot of text here)


Consequences: (See attached the customs documents and the UPS document).

1) we received the UPS invoice for customs fees/duties – 32€.

2) we had to pay VAT – 198€

Total: 32 + 198 = 230 euros
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There is a basic misunderstanding here. The customs duty was €32 on €900, or 3.5%
VAT was €198, which would also be paid for anything, regardless of where it was sourced from.
So in fact what you are protesting about is a charge of 3.5% which I really do not think can be described as being "pretty heavy".
VAT (Value Added Tax) is a tax on consumption, set by each country. Here in Denmark it's 25% with no exceptions, in the UK it's 20% with books, magazines, baby clothes etc. all either zero rated or at a lower rate. It's nothing whatsoever to do with trade barriers or customs.

There are regulations for example on food standards that mean that some US products cannot be sold in the EU - chickens that have been washed in chlorine, or Cybertrucks that do not meet vehicle requirements, but these are documented standards applicable to all imports from all countries.
 
The US COULD pretty much produce everything internally - as could most large countries with extensive natural resources - but that would mean that the "green" initiatives would have to go away and that won't happen. It's cheaper and more environmentally advantageous for the US to import many items as opposed to producing them. The USA produces more oil than any other country BUT exports much of it to be refined and then imported back into the US because it's cheaper than building new oil refineries AND faces no environmental activist protests over refinery pollution.

I don't have any issue with the tariffs per se though, as has been pointed out, at this stage it is all rather vague/confusing. I don't know if the stated purpose - to encourage US production of various products rather than importing - will actually work to the extent "advertised." I doubt it but we'll see...
 
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Madnorton said:
Currently we have orders with US companies, and we as you know have ordered parts for many years from US companies. We usually pay a tariff rate 2.5 - 2.75% on parts for classic motorcycles coming from the USA, I believe this was the case for parts from the UK into the USA, but now it's 10%, or is it. To be very clear on why the US administration is lacking in their knee jerk tariff introduction we still don't have answers for the following -
1. Are tariffs collected on the small value parcels - in the past these were exempt, but not since Saturday it seems. Many owners will not have seen this as the level was around $39.00 I believe.
2. A complete gearbox for a classic Norton will it attract 25% as an automotive part, or 10% as a kit.
3. Most motorcycle parts are steel and aluminium, will the tariffs on steel and aluminium apply.
4. Will trade customers in the USA be able to order parts and they arrange payment for the tariff like the system used in many other countries.
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Until now, there were no duties on motorcycle parts from any country I buy from assuming the correct HSS code was used 8714-10-0010 (seats), 8714-10-0020 (wheels), 8714-10-0050 (other).
 
NPeteN said:
Good on them. I'm afraid most Americans are so addicted to cheap overseas garbage they will never pony up for American made products. Nevermind weening themselves completely from Chinas plastic teat!
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It’s the same the world over.

Folk buy the cheapest possible imported stuff regardless… then blame their govt when industries go to the wall…
 
Madnorton said:
1. Are tariffs collected on the small value parcels - in the past these were exempt, but not since Saturday it seems. Many owners will not have seen this as the level was around $39.00 I believe.
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This is a sticky wicket, as the lads like to say.

The Chinese were easily sneaking fentanyl into the US using this loophole, because customs found it "nearly impossible" to search 13,893,241 small packets every day
 
MexicoMike said:
The US COULD pretty much produce everything internally - as could most large countries with extensive natural resources - but that would mean that the "green" initiatives would have to go away and that won't happen.
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That IS happening, and it's picking up speed as fast as those initiatives can be proven to be POLITICAL, and not technical.

The entire "green initiative" was a political scheme to enrich politicians and their cronies.
 
"This agreement was originally called the North American Free Trade agreement. It was negotiated by Ronald Reagan and Brian Mulroney ( Canadian PM) Both leaders believed in free trade"


And SIGNED into law by William Jefferson Clinton.

The deceipt by omission runs rampant.
 
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concours said:
"This agreement was originally called the North American Free Trade agreement. It was negotiated by Ronald Reagan and Brian Mulroney ( Canadian PM) Both leaders believed in free trade"


And SIGNED into law by William Jefferson Clinton.

The deceipt by omission runs rampant.
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Huh ? No deceipt intended.
I can only tell you what my experiences were as an importer of US goods to Canada.
The Canadian Tariffs disappeared over about a two year period after Mulroney signed Nafta in 1988. They were phased out. At first there were a few things I could bring thru duty or tariff free, then more and more.
By 1990 it was just a case of paying BC sales tax at the border.
Sometimes we would purchase Canadian Lumber in the US and bring it into Canada Tariff free.
These were export grades ( very high grades) of lumber that weren't readily available in Canada, even though they had been harvested and milled here.
It was a great time for our business as we could shop the US as well as Canada. The border was no longer an impediment to business.
I am not familiar with the state of US tariffs on Canadian goods going to the US at that time as I was only importing into Canada. That action was free of Tariff for all of our business items, farm machinery and regular household goods that we purchased after 1990.


Glen
 
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worntorn said:
What Canadian Tariffs are you referring to?
I've been importing motorcycles, parts, farm machinery, and household items from the US to Canada for 45 years now. I have paid noTariff on any item after Free Trade came into being in the late 80s. Over the years this amounts to thousands of importations of hundreds of different items.
There are barriers in place now, but those are retaliatory from March 4 this year.

Glen
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See post # 102 for your answer.
 
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