Trump's Tariffs 25%, who charges for the tariffs?

Simple question, do i need to raise my prices or shipping charges? Did ebay send a communication to clarify? Are they gonna charge client upfront like taxes? 

Rude awakening let's say ...

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Re: Trump's Tariffs 25%, who charges for the tariffs?

Simple question, hard to answer. No need to raise prices. Crickets from eBay.

 

There is no clear answer as to how/who will be collecting the fees, which should (on paper) be paid by the buyers in the US, if the goods you sell are manufactured in Canada, Mexico or China. 

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Re: Trump's Tariffs 25%, who charges for the tariffs?

chicweb
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Tariff are charged by the government of the importer country. (In this case, the United States border is charging the tariff to the customer).

 

It's not up to the exporter/seller to  charge for it.

 

By the way, here's a link about import charges on eBay

 

https://www.ebay.ca/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

 

"Buyers are responsible for paying import charges. If you offer international shipping, you can't include these costs in the item's purchase and shipping price. Make sure to let international buyers know this in your listings."

 

As for Ebay, they could charge it in the checkout and remit it to the USA border agency on behalf of the buyer... But that would need a special deal between them to do so and would take some time to implement (I guess).

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Re: Trump's Tariffs 25%, who charges for the tariffs?

chicweb
Community Member

By the way, do we really want eBay to do that? Don't forget that the fees charged to the sellers are based on the total of an order, including taxes and fees.

 

I'm not sure it would be that good to let eBay charge them at checkout... But of course, it would be less hassles for the buyers and sellers in the end.

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Re: Trump's Tariffs 25%, who charges for the tariffs?


@chicweb wrote:

By the way, do we really want eBay to do that? Don't forget that the fees charged to the sellers are based on the total of an order, including taxes and fees.

 

I'm not sure it would be that good to let eBay charge them at checkout... But of course, it would be less hassles for the buyers and sellers in the end.


IMO, yes, we do. It means the average buyer, who often never even reads the description of an ad, doesn't have to pay an unexpected 25% fee and blame us for it. They know it up front, and if they purchase, are willing to pay that extra cost.  Information over ignorance.

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Re: Trump's Tariffs 25%, who charges for the tariffs?

True, but that would mean more fees for the sellers. It will count toward the order's total. The Final Value fee is calculated on that total.

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Re: Trump's Tariffs 25%, who charges for the tariffs?


@chicweb wrote:

True, but that would mean more fees for the sellers. It will count toward the order's total. The Final Value fee is calculated on that total.


There's nothing saying eBay would HAVE to collect FVF on it. They already make some concessions to support international orders, such as only charging the FVF on the lower of actual shipping cost or domestic shipping cost.

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Re: Trump's Tariffs 25%, who charges for the tariffs?

Agreed but is that really what they would do?

 

My suggestion if eBay was collecting tariffs would be to only charge the 2.8% payment processing fee such as what is charge on high value items that exceed the $7500 fee cap.

 

The problem with eBay collecting tariffs is that they do not have the ability to determine if the charges are accurately calculated. One could simply list items as originating from a country other than CA, MX or CN, those shipment would still qualify for the di minimis exemption of $800.

 

Except in a system such as EIS where eBay can inspect the items and confirm the information for customs in the destination country. Packages that are shipped by sellers directly do not provide that ability.

 

In theory eBay Canada could establish a system like EIS, I personally would not want to deal with that type of overly expensive (for buyers) and comparatively very slow delivery times.

 

My buyers would end up paying more, waiting longer and sellers, especially when we are talking about shipping to the US, will make less money.

 

The bottom line on EIS is it's the worlds most expensive insurance, maybe worth it if you are shipping to Botswana or Uruguay but not for the USA where lost in transit is pretty rare (I've had 1 lost shipment to the US in the past 40+ years).

 

 



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
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Message 8 of 10
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Re: Trump's Tariffs 25%, who charges for the tariffs?

I believe the di minimis exemption is being canceled. They already tried to cancel it for shipments from China but paused on that after thousands of parcels were held up at USPS facilities, where everyone was confused with what to do.
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Re: Trump's Tariffs 25%, who charges for the tariffs?

Just wait when every American who ordered a pair of 5$ socks on Temu or Shein now has to pay a 35% tariff to their postman when they show up at their door after waiting 3 weeks for the package to pass a full formal entry. They're going to be thrilled.
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