this post was submitted on 03 Sep 2025
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The majority of the sweeping tariffs Donald Trump imposed during his second term face one final litmus test that will determine whether he can continue to levy them – and also whether businesses are eligible for massive refunds.

That potentially dramatic turn in the tariff saga comes after a federal appeals court ruled on Friday that Trump unlawfully leaned on the International Emergency Economic Powers Act (IEEPA) to impose across-the-board duties on countries.

Trump had used those powers to push import tax rates as high as 50% on India and Brazil – and as high as 145% on China earlier this year.

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[–] moakley@lemmy.world 2 points 2 hours ago (1 children)

Oh, duh. I'm embarrassed I got it confused. I was thinking that the cost is passed on to the importer, but it's actually paid by the importer.

[–] LifeInMultipleChoice@lemmy.world 2 points 1 hour ago* (last edited 1 hour ago)

Yeah they aren't telling companies you have to pay to send your product here, because there would be no way to collect that, as they aren't governed by us. (Trolls standing on a bridge comes to mind). Instead every item imported into the country is bought by someone, that someone has to have an itemized list of what they purchased to go through customs and what not to make sure they aren't crates full of dynamite, or plant seeds that are unauthorized. That inventory and costs are then taxed by the government or held by customs I believe.

e.g. If Paul sets a tariff on Amazon orders at his house, his wife orders a package off Amazon. USPS or whomever delivers the package, Paul's security guard, likely Paul himself gets the inventory of the packages that arrive, see it is from Amazon and charges his wife 50% of that cost to take it into the house. Amazon has no part in that process. Buttt what it may do is make Puals wife less likely to order from Amazon, IF it is cheaper to get the product from someone else then. If the product was $50 on Amazon, and $100 at the store, she would still buy it off Amazon as she would still only pay $75 after the tax, instead of $100.

Paul just made $25 in taxes that he can invest into the house. His wife spent $25 more. Amazon made the same, but may lose future business.