What tariffs were paid by FedEx as a shipper that were not passed on to their customers?

Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

Ervin Burrell said:

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Old McDonald said:

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here's how it works for those who haven't been paying attention:

1) trump tariffs the rest of the world willy nilly
2) importers have to pay the government more in taxes
3) they pass the tax on to you, the end consumer
4) trump's tariffs ruled unlawful by Supreme Court
5) importers sue the government and get their money back
6) you get nothing and are left holding the bag

many "conservatives" gleefully voted for this

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Taxes are BADASS now, and super conservative. Dear Leader has spoken, fall in line. Anybody who doesn't like increased taxes is a deep state, woke Marxist.

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People around here always complaining about switching to a consumption tax also seem to hate tariffs.

Which is interesting.

captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

captkirk said:

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What tariffs were paid by FedEx as a shipper that were not passed on to their customers?

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I have been told by the expert economists on here that 100% of those costs are always passed on to consumers.

Ragoo said:

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captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

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Distribution runs off replacement cost. That is a standard in the industry, and if you don't understand that, pretty much all other discussion is hard to move forward with.

Regarding how long the part stayed in inventory - again, irrelevant because they will have to replace it. When tariffs eventually go away, they will have overpriced inventory to the market and will be selling at a lower cost to bleed through it.

Ordering a part only when someone needs it is not distribution. You're then a drop shipper, or a broker, and bring little value to the supply chain.

mm98 said:

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Ragoo said:

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captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

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Distribution runs off replacement cost. That is a standard in the industry, and if you don't understand that, pretty much all other discussion is hard to move forward with.

Regarding how long the part stayed in inventory - again, irrelevant because they will have to replace it. When tariffs eventually go away, they will have overpriced inventory to the market and will be selling at a lower cost to bleed through it.

Ordering a part only when someone needs it is not distribution. You're then a drop shipper, or a broker, and bring little value to the supply chain.

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good explanation. Why front run a tariff charge on a part that didn't receive a tariff versus applied to the replacement part when it is sold? If it were me I would ask for the import documents on the part showing the applied tariff otherwise reject the 10% surcharge. As a buyer of goods that is how we have been navigating these charges.

BusterAg said:

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BMX Bandit said:

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I'm not saying you are wrong here, but why is this the case?

From an economic point of view, if a company pays a $10 tax, and then expressly charges for that $10 tax to its customers, and then recoups that $10 tax, hasn't the company experienced a windfall?

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the issue is not "Economic damages" per se as you are thinking of in a traditional lawsuit.

its "what amount of tariff was supposed to be charged"

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I'm not saying you are wrong, but why are you right here? What is the precedence that establishes this?

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Importers seek refunds all the time (and sue) CBP all the time for overpaid tariffs or misclassifications of an import or other issues. At the most basic level, Fedex isn't doing anything novel.

The novel and incredibly messy part of this is mostly the sheer scale of the wrongfully paid tariffs.


As far as the ability of the buyer/purchaser to get their refund from the importer they paid, I'm not an expert on that but that's probably rooted in contract law as much as anything else.

Ragoo said:

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captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

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3 questions:

1) What do you suppose the lead time is on an auto part imported from Germany?
2) As a customer, how many weeks or months are you willing to wait to get your car running?
3) As a business that sells auto parts, how many of your customers will just switch to a supplier that carries the part they need in inventory?

you can certainly do that if you have buying power. But if you're a typical consumer you don't have that power.

Ragoo said:

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mm98 said:

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Ragoo said:

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captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

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Distribution runs off replacement cost. That is a standard in the industry, and if you don't understand that, pretty much all other discussion is hard to move forward with.

Regarding how long the part stayed in inventory - again, irrelevant because they will have to replace it. When tariffs eventually go away, they will have overpriced inventory to the market and will be selling at a lower cost to bleed through it.

Ordering a part only when someone needs it is not distribution. You're then a drop shipper, or a broker, and bring little value to the supply chain.

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good explanation. Why front run a tariff charge on a part that didn't receive a tariff versus applied to the replacement part when it is sold? If it were me I would ask for the import documents on the part showing the applied tariff otherwise reject the 10% surcharge. As a buyer of goods that is how we have been navigating these charges.

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When a business quotes you a price for a given item, you demand to see what they paid for the item? Do you have a cost + arrangement with every concern you do business with?

Left didn't care about Tariffs until Trump started using them, crickets during the Biden admin.

captkirk said:

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Ragoo said:

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mm98 said:

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Ragoo said:

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captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

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Distribution runs off replacement cost. That is a standard in the industry, and if you don't understand that, pretty much all other discussion is hard to move forward with.

Regarding how long the part stayed in inventory - again, irrelevant because they will have to replace it. When tariffs eventually go away, they will have overpriced inventory to the market and will be selling at a lower cost to bleed through it.

Ordering a part only when someone needs it is not distribution. You're then a drop shipper, or a broker, and bring little value to the supply chain.

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good explanation. Why front run a tariff charge on a part that didn't receive a tariff versus applied to the replacement part when it is sold? If it were me I would ask for the import documents on the part showing the applied tariff otherwise reject the 10% surcharge. As a buyer of goods that is how we have been navigating these charges.

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When a business quotes you a price for a given item, you demand to see what they paid for the item? Do you have a cost + arrangement with every concern you do business with?

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if they apply a 10% tariff surcharge line item, yes. That was contemplated in a previous comment by a poster.

Ragoo said:

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mm98 said:

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Ragoo said:

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captkirk said:

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Ragoo said:

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EFR said:

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They choose to replace the part because they choose to stay in business.

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they could, gasp, order the part when someone needs it. Holding inventory, cash out the door, is not the only way to stay in business. You also don't know how long the previous part sat in inventory.

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Spoken like someone who doesn't know what they are talking about.

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you are welcome to present a counter point, but don't be a *****.

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Distribution runs off replacement cost. That is a standard in the industry, and if you don't understand that, pretty much all other discussion is hard to move forward with.

Regarding how long the part stayed in inventory - again, irrelevant because they will have to replace it. When tariffs eventually go away, they will have overpriced inventory to the market and will be selling at a lower cost to bleed through it.

Ordering a part only when someone needs it is not distribution. You're then a drop shipper, or a broker, and bring little value to the supply chain.

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good explanation. Why front run a tariff charge on a part that didn't receive a tariff versus applied to the replacement part when it is sold? If it were me I would ask for the import documents on the part showing the applied tariff otherwise reject the 10% surcharge. As a buyer of goods that is how we have been navigating these charges.

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So your second comment first, unless you have a written agreement they have no obligation to show you anything from import costs and duties. So long as it was quoted to you prior to your PO, and the incoterms were clear, rejecting it is bad practice IMO. I would not instruct my buyers to do that...only if a random tariff invoice came to me with no explanation, approval, or even previous verbal discussion of it.

On your first question, you're not entirely off base. If I have a limited inventory, its certainly fair to tell a customer I'll give you XX days but after XX, all business will have the tariff rate applied. But you as a buyer have to extend that on the backside. If tariffs are removed next year and that supplier has a lot of tariff impacted inventory, you owe it back to continue to buy at the higher price to balance it out.

All this is being stated from a distribution standpoint and MRO business. If you're a buyer for a capital project through an EPC firm, then damn near ever PO is bought and negotiated on its own, and each instance is unique.

BMX Bandit said:

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stallion6 said:

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BMX Bandit said:

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do you blame them? How else would you expect a company that was wrongfully taxed to act? especially given the government said that anyone paying the tariff could get that money back if they prevailed


If you were wrongfully taxed and won a lawsuit against the government on that issue, wouldn't you expect a refund?

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How did you determine "wrongfully taxed"? CNN tell you that?

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Looks like you missed some recent news. Here you go.



https://www.supremecourt.gov/opinions/25pdf/24-1287_new_3135.pdf

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Looks like you need a reading comprehension course. That ruling only relates to a decision that Trump cannot use IEPPA. Are you really naive enough to think Trump will not continue with tariffs?

stallion6 said:

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BMX Bandit said:

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stallion6 said:

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BMX Bandit said:

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do you blame them? How else would you expect a company that was wrongfully taxed to act? especially given the government said that anyone paying the tariff could get that money back if they prevailed


If you were wrongfully taxed and won a lawsuit against the government on that issue, wouldn't you expect a refund?

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How did you determine "wrongfully taxed"? CNN tell you that?

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Looks like you missed some recent news. Here you go.



https://www.supremecourt.gov/opinions/25pdf/24-1287_new_3135.pdf

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Looks like you need a reading comprehension course. That ruling only relates to a decision that Trump cannot use IEPPA. Are you really naive enough to think Trump will not continue with tariffs?

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If someone paid a specific tariff which at the time was in effect due to an order citing IEEPA as the authority for respective tariff, they were "wrongfully taxed."

Period. End of story.

Quote:

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That ruling only relates to a decision that Trump cannot use IEPPA.

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Im well aware of that and nothing in my post suggests I was referring specifically to anything other but IEPPA[

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Are you really naive enough to think Trump will not continue with tariffs?

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Nothing I posted even remotely suggests that I think that. There are plenty of tariffs Trump is using and will continue to use.

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Looks like you need a reading comprehension course.

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Off the charts irony.

Scruffy said:

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richardag said:

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Tex100 said:

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https://www.foxbusiness.com/economy/fedex-sues-trump-administration-full-tariff-refunds-supreme-court-ruling-ieepa

Did they raise their prices to cover tariffs? It wasn't in violation of a statute.

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quote from the article:

• The complaint, filed against the government and U.S. Customs and Border Protection (CBP) in the Court of International Trade, alleges FedEx incurred costs to expedite shipments through customs and is entitled to a refund of duties with interest, as well as compensation for the financial harm it suffered.

So Fed Ex was paying the tariffs that were to be paid buy the companies that actually owed the money for the tariffs?
So shouldn't they send the bill to their customers that actually owed the money and then those companies sue for their refunds?

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They did.
They billed my wife the cost of the tariff, and an extra (i think $24) for processing and paying the tariff for us.

There was no notification, or opt-out. They unilaterally did that and charged us.

If FedEx gets the tariffs refunded, they will face a class action lawsuit if they don't refund the tariff and the processing charge they put in customer (and by customers i mean the receiving person, not the company that shipped the goods)

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thank you for the information. I wasn't aware of the way. FedEx was handling this..

BMX Bandit said:

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My Canadian girlfriend

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Niagra Falls area?

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You wouldn't know her.

TX_COWDOC said:

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Let's see the painting.

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Not able to post photos here. Should clarify that she is my ex gf.