How do these Tariff work ? In today’s high tech world, If you take a turbine, a car frame, an airplane wing, and basically almost every metal-part. There is a lot of technology/engineering involved. The price of my car includes the price of the steal, but also the cost of engineering to optimise it’s fuel consumption while keeping it reliable and comfortable. Is that cost included on the tariff ?
If I buy steel for $1000 and pay 10% tariff the total cost is $1100
If I make a car out of the steel and sell it I don’t pay any tariff. But I’ll charge $100 more because my steel cost was higher. (If someone abroad buys it their government may force them to pay a tariff, but I don’t see that directly).
If I buy an engine I’ll pay the engine tariff, they don’t care if it’s made of aluminium, steel, wood or whatever. The custom officer will look at it and say that it is an engine and therefore it will be subject to engine tariffs.
It’s always the total price of the thing you pay a tariff on. If you buy a car you pay the car tariff. If you disassemble the car and ship the parts in a box the customs official may decide it’s “car parts” and you pay the tariff on “car parts” which may be higher or lower.
In my professional opinion, a wooden engine is a terrible idea…
Oh we’ll still have metal engines outside the US. If your wooden engine has issues like instantaneous explosion please contact your local president.