I am in manufacturing. Yes, the tariff is passed along. Some as a cost of goods increase as well as a line item charge. The latter if we can figure out that we have been charged and the product hasn’t shipped yet.
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The MX tariffs will hurt US
companies with IMMEX facilities especially if CN, MX or CA products are imported in to the US and then exported to MX. Any of those goods that have “substantial transformation” or “value-add” in MX will be double tariffed when reimported into the US.
3. Using an IMMEX facility still involves an import/export process. Because the laptop has been altered, tariffs must be reapplied, now including the added value of the new memory. Hence, the second tariff on the laptop. There are over 5,000+ MX IMMEX facilities providing low cost labor to Int’l COs
2. The company then sends the laptops to an IMMEX facility in MX, where more memory is added taking advantage of lower labor costs. Adding memory doesn’t change the Co of Origin from China to Mexico, as this does not constitute substantial transformation—the product remains classified as a laptop.
1. Many global distributors can only sell products within their designated country. Example, Dell US can only sell within the US, while Dell Canada can only sell in Canada, etc. Dell manufactures laptops in China, Dell US imports, pays the 1st tariff and sells and delivers them to a U.S. company.
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companies with IMMEX facilities especially if CN, MX or CA products are imported in to the US and then exported to MX. Any of those goods that have “substantial transformation” or “value-add” in MX will be double tariffed when reimported into the US.