Tariff is part of the product Cost, thus is added

[wrightcattle]

Into total product cost.

tariffs do Not come out of the cost of a product.

at least that's what history tells us.

why the  trump tariffs are being handled wrong regarding some USA agri export products is rather redundant.  ( course trump is a redundant anyway, and folks sometimes follow like sheep into the wrong ways to account for things )

so so as far as the 25% USA export tax ( tariff ), on a $10 bushel of beans with the 25% added to that, the beans are a$12.50 per bushel cost item. ( not a $7.50 per bu cost item...like it's currently being treated ).

get smarter, be more crooked but better at it than the dc folks are. Lol.

[Farmerjoe79]

That makes no sense. They were just 10 dollars with no tariff so why would you say they should be 12.50🤷🏻‍♂️

[illinifarmer]

They should be over 15$ , but I think I understand what your getting at. I believe when the first retaliation on soybeans took place they were priced at around 9$.

[WCMO]

If the market is such that the buyer subject to tariffs can pay sufficiently less for the base product, then the overall cost hasn't changed.  Instead of the tariffed buyer paying more for our beans, they have been shopping elsewhere, and likely paying more.  At some point, the Chinese buyer will get some sense and figure out that it might be cheaper to buy US beans, and pay the tariff.

[wrightcattle]

Because another Cost is added when the 25% export tax is added on.  

The seller does Not pay the sales tax....the buyer does.

funny thing bout the USA sales tax ( tariff ) on goods exported is nobody seems to know who or where those checks go to. Lol.  How interesting.

[rayfcom]

I am kind of perplexed why the conventional wisdom is that a tariff war will be bad for food stuffs. People still need to eat, tariffs or not, and if anything tariffs will serve to increase the cost of food for countries that import food. If the Chinese put a tariff on American corn, but not on the corn of another country, some entrepreneur in the non-tariff country will establish a middle man business, buying from the US producer, bumping the price up to make his profit, and then selling it tariff free to the Chinese.

Perhaps the Chinese won't buy as much corn at the tariff-added higher price, but that change will be marginal at best because its not like each consumer over there is buying tremendous amounts of corn beyond what they can eat. This is not like a discretionary product such as textiles. The price of pants goes up due to a Chinese tariff, the Chinese man may not buy any more pants for a while. But when it comes to food, how much is the Chinese person going to reduce the corn s/he eats ? If corn was the only grain subject to a tariff, then yes, I could see some switching of food preference to the cheaper non-tariff alternatives. But when all food products are subjected to tariffs, switching from corn to oats is not going to save much money for the Chinese consumer.

Personally I think tariffs are one of the best things that could have been done for the American worker and the American economy at this point. Free trade is an economy killer, fair trade is what keeps the economic engine spinning. Trade is neither fair nor free when one country is willing to accept a substantially lower standard of living for its citizens than another country. Its not fair to the American worker that s/he must see the national wealth that they earned be siphoned off to the low wage countries just so the owners of importing companies in their own country can become wealthier at their workers' expense. And its certainly not free, for even if American consumers save a few dollars on their purchases of foreign made goods, the costs of unemployment, re-training, and loss of opportunity costs the country's residents far more than they save by buying the foreign made goods.

Capitalistic economies require a growing number of consumers to purchase marginally more and more goods for their economy to grow. That's why Henry Ford paid his workers more than his competitors paid theirs, so that there would be a steadily increasing body of consumers for his cars who had the financial wherewithal to buy his cars at progressively higher prices. That cannot happen when the better paying jobs of an economy are exported to low wage countries. And that's what has been happening in America for the last twenty five years, and its taken a great toll on American households. People have had to take on debt to replace earnings and savings just to keep the standard of living they earned. All the while the shareholders in the multi-national companies that benefit from unfair trade have seen the value of their companies skyrocket by multiples of more than 20 times. To make up for the shortfalls, American consumers have borrowed against their biggest asset - their home - and the American economy has gone trillions of dollars into debt to help cushion the economic dislocations of displaced workers.

That kind of nonsense has to stop or you won't have an American economy for long. It was the replacement of debt for assets by American consumers that was the underlying cause of the financial crisis of 2008-09, and if the drain of American wealth continues, there won't be enough money available to bail out the US economy when the next crisis occurs. 

So for farmers, I doubt that the imposition of tariffs is going to have much of a negative effect on your businesses in the long run. In fact, a strengthened US economy with more American workers earning progressively more wages might actually help your businesses as prices will be bid up due to the increased consumptive power of the American workforce. And in terms of the overall economy, tariffs will start to reverse the cancer that has eaten away at the midsections of American households for far too long. Sure, stock prices will be lower and corporate earnings will take a tumble. But at least the distribution of profits will once again put workers above shareholders, and that is what makes capitalism thrive.

Every American worker should thank Trump for having the balls to move forward with this tariff plan, because whether you realize it or not, Trump is the first guy in Washington who has stood up for the American worker against the American shareholder in quite a long time. Which is why the puppets on the strings of the captains of the multi-national industries in both the media and Congress are trying to take Trump's legs out from under him, even if he gave them an undeserved windfall profit with the tax bill he proposed and the Congress passed. Tariffs have never been popular with the monied-class, remember they were a major cause of the American Civil War. But unless we want to see the words of Karl Marx come true in his critique of capitalism, Americans had better wake up and realize that they need to start putting their financial interests first instead of buying into the myth that giving away their manufacturing industry is in some way in their best interest. Its not.

[wrightcattle]

The whole deal seems like a giant ruse.

it a " Nobody know, Nobody cares " deal as far as the USA collecting anything as things appear.

for example, say you've sold a Chinese customer an agri product and of course charged the customer the 25% sales tax. The bill is paid product delivered etc.

where does one send the dough collected for uncles sales tax...i.e. Tariff ?

[rayfcom]

You know that's a really good question that a lot of farmers probably are asking right now. I am sure its not going to be a "Nobody knows, nobody cares" kind of issue, because the US government is pretty darned good at finding the people who owe them money.

https://2016.export.gov/logistics/eg_main_018130.asp  is a good website that tells you how you pay a tariff on goods you export. 

Regarding imports,

http://www.chicagotribune.com/news/nationworld/ct-how-tariffs-work-20180602-story.html

In the United States, tariffs — also called duties or levies — are collected by Customs and Border Protection agents at 328 ports of entry across the country. Proceeds go to the Treasury. The tariff rates are published by the U.S. International Trade Commission in the Harmonized Tariff Schedule, which lists U.S. tariffs on everything from dried plantains (1.4 percent) to parachutes (3 percent).

Basically the tariffs are collected at the port into which the goods are exported. Your export agent will pay them for you in a foreign country, and then bill you. Import agents bill the exporters from outside America who send you goods. 

[wrightcattle]

Ray, the issue is trumps 25% tariff is on goods Leaving the USA.

the USA is not setup to handle such a deal....no matter what bs you post about it.

im fully aware the export agent on the other end handles any tariff on incoming There, charged in China.

irregardless we foresaw the possibility of the afore issue.

sooo the customer thinks they're getting a heck of a deal on the next shipment.

25% off because that's what the customer has so far overpaid for goods sent previous ( our understanding was customs would charge the 25% in the USA....well obviously not, LoL. )

[rayfcom]

Here's the press release announcing the program you mention from The Office of the United States Trade Representative :

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/august/ustr-finalizes-seco...

In the message it states "Customs and Border Protection will begin to collect the additional duties on the Chinese imports on August 23."

My guess is that they have a way to collect the tariff, probably at the point of departure. I am sure you will find out about it once you start shipping products covered under the duty to China.

Now what you wrote in your last message is that the Customs will not be collecting the duty.  My bet is that someone will collect it, so be prepared even if you do not know who it will be. 

If I wanted to know the answer to that question, I would call the Office of the US Trade Representative. Here is a website listing all their telephone numbers :

https://ustr.gov/about-us/contact-us