Tariffs

From my perspective bringing parts into Canada I go across and pick up everything myself so I don't use a broker I have been down twice in the last 3 weeks, bringing back approx 200-250 Can each time and i was waived through after showing the guard my invoices I asked about the tariffs and he said on lower amounts, it was up to the discretion of the individual guard If it was 4-5 hundred, I would probably have to pay Have to wait and see.

Thanks, Rick
 
Not sure "economy" is the right word. Currently, we're seeing market swings and some personal hits on the wallet. However, the economy is largely unaffected right now because that's a slow-moving concept. The daily ups and downs look like major changes, but one needs to plot a line based on trajectory over time to actually determine if the economy is being "fixed" or "broken".

Will jobs be created? Will revenue kept in-country increase? Will that result in tax cuts that positively impact middle- and lower-class earners? Will interest rates change? Will inflation go down? Those are all long range questions that have yet to be answered.
 
tdgray said:
Guys... I don't like politics in my car hobby. If there is a legitimate commentary on tariffs and how much or the mechanics of it as it relates to the car parts we need please do share. Otherwise, there are other venues that do not detract from the car related enjoyment here.
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i have been watching this fairly close. a few comments have come close to the line i have drawn ... but haven't pushed my boundaries too far. i will admit that the comment on tax breaks came as close as anything. that being said - i am going to remind everybody not to stray too far from the BMW topics at hand. things affecting buying cars / parts for our cars and keeping people apprised of any work around is great information.
 
rsporsche said:
i have been watching this fairly close. a few comments have come close to the line i have drawn .
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Nice!
I think there will be winners and losers, and knowing myself I know which side I will be... but I have great luck for weather wherever I go.
 
As the OP. My observation was purely practical. There has been a lot of noise and misdirection about who pays for tariffs.

So here I am buying parts for my E9 restoration, and contrary to assertions by politicians about how those importing countries will be paying the U.S billions, I am faced with a $500 delivery cost on a $2K purchase.. (this is in addition to the $600 shipping cost!!)

So, pretty clear. The end user pays the tariff. Despite all assertions to the contrary, the tariff is a tax, paid to some extent (in my case 100%) by the consumer.
 
rsporsche said:
seriously - tariffs on french / italian wine, scotch + irish whisky, french + italian cheeses - total bummer for somebody who likes to cook + eat (and drink)
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Italian olive oil is now $40 per liter...California brands have followed suit and are only slightly cheaper...EXACTLY as most economists predicted..

If anyone is making BMW replacement parts locally, I'd expect their prices to rise as well.
 
Please continue to update on what tariff rate you are charged for parts shipments from Europe (or elsewhere).

The 90 day pause announced April 9 should have reverted the tariffs back to a baseline tariff of 10%. This could be on top of the previously existing 2.5%' not sure.

Would be opportune timing to order parts in case it goes up again.
 
ScottAndrews said:
As the OP. My observation was purely practical. There has been a lot of noise and misdirection about who pays for tariffs.

So here I am buying parts for my E9 restoration, and contrary to assertions by politicians about how those importing countries will be paying the U.S billions, I am faced with a $500 delivery cost on a $2K purchase.. (this is in addition to the $600 shipping cost!!)

So, pretty clear. The end user pays the tariff. Despite all assertions to the contrary, the tariff is a tax, paid to some extent (in my case 100%) by the consumer.
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Spot on Scott. Somewhere between 0 and 100% of the tariff is funded by the consumer, it can also be supra-linear and thus more than 100% to the extent that tariffs reduce supply. It can be sublinear if it reduces demand (say if there is a recession). It can lower inflation by reducing demand. It does depend on the item like you say. Bessent argues that the economic research shows that across the entire economy a fraction of 1/4 of the tariff is passed to the consumer.
If it ends up creating a large China vs other differential it can a blessing in disguise for all the E9 parts whose quality came down by coming from Asia, like radiators. It will be a mess in terms of smuggling and counterfeit.
But my main pessimism is that companies and adversaries know that as long as tariffs are executive initiatives rather than legislated by Congress all you have to do is weather the 3 and change year of an administration which is shorter than a business cycle... How can change be permanent when everybody knows that?
In summary, hoarding E9 parts is alway a good idea.
 
my experience with furniture tariffs was quite simple - whoever was importing the products into the USA paid the tariff. if the importer was also a reseller, broker or company owner ... they decided how much they were going to eat + how much to pass on. if the importer is the end user, they pay 100% of the tariff. in regard to @ScottAndrews post about olive oil - sure, competition is competition, prices will be about the same between domestic + very good foreign products. being that olive oil in the USA is a recently developed product (say last 20 yrs +/-), compared to hundreds of years for France, Spain, Italy, Greece + other areas ... our domestic oils have generally been less expensive than most - still very good but perhaps not as good as the best Italian oils ... which are twice the price. the commercial oils are all about the same price. i bought some specialty oils earlier in the year and they haven't arrived - i suspect i will get hit with the tariff on 50 bucks / liter.
 
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