Dominican Republic Hit With 10% Tariff Today By US

josh2203

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Dec 5, 2013
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It used to work too. I actually mailed birthday and Christmas cards - with cash inside - back in the 80s. Maybe into early 90s.
I can confirm IMPOSDOM worked perfectly in POP at least back in 2010-2015. I was sent Christmas cards by my parents in EU and it took a couple of weeks but they arrived perfectly.
 

cavok

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Jun 16, 2014
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The problem with INPOSDOM is that it works better in some areas than others and some people have had better luck than others. INPOSDOM is a crap shoot.
 

bob saunders

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Jan 1, 2002
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The 10% tariff on the DR will begin at 12:01 AM April 5th.

With few exceptions the DR will be affected. The biggest exception for the DR is gold.

Products manufactured in the free trade zones and exported to the US will be tariffed 10%.

The issues with the DR and they are small compared to the the other larger trading partners of the US, are rice and autos. The DR imposes heavy quotas/tariffs on US rice imports, despite DR/CAFTA having sunset them. Additionally, and from personal experience, the DR has not abided by DR/CAFTA in that US made vehicles would enter the DR essentially under a reduced tax regimen compared to vehicles manufactured in other countries.

Finally, unless something changes, on May 5th, 2025 small value goods from China will also be taxed. Think of the small items people purchase and send to a P.O. Box in the US and then send via courier to the DR.

The worldwide implications on people and goods are huge and I suspect the phone lines at the WH are lighting up from countries looking for exemptions or as is the case of Vietnam looking to rethink their tax/tariff regimen.

Agree or disagree, the fact is the US is merely asking for fair trade and an even tax/tariff playing field, something that has been missing for decades.

Respectfully,
Playacaribe2
https://en.wikipedia.org/wiki/Canada–United_States_softwood_lumber_dispute American perception of unfair only means unfair to them, not to any other country.
 

keepcoming

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May 25, 2011
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Reminder the thread is about how the tariffs will affect the DR, not Canada, etc...
 
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Ecoman1949

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People in the USA will likely pay more for goods from the DR. That is what a 10% tariff on DR goods coming into the USA does.

So the DR might sell fewer goods to the USA. Not an ecomic expert, so I am not sure why any USA goods coming into the DR should have
a 10% tariff coming for which Trump is now reciprocating.

My point is that If the DR had no tariff on US goods from DR-CAFTA, then there should be no 10% tariff on DR goods. Some goods must be exempt from DR-CAFTA and the DR is charing a tariff on them?

Someone expert in this can elaborate.
Oddly, goods under CUSMA are not subject to the 10% reciprocal US tariffs.
 

bob saunders

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I don't know if there is a connection, but I bought some American Greek yogurt this morning and the price and the VAT were higher than the price I paid a week prior.
 
Jan 9, 2004
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Whereas actually it's a sales tax on all goods, wherever they come from - even UK made.

It's like ITBIS here in the DR which is levied on all goods except some exempted ones.
True, but the issue that most people do not understand, and the reason why VAT can be construed by some as a rebatable tariff is that it can be given back to the producer making their cost of goods cheaper.

VAT, as I understand them, are added all along the supply chain.

So if an automobile manufacturer in the UK for example buys steel to make a car...they pay a VAT on that steel. When they produce/assemble the car and ship it out of the country the VAT they paid to the steel supplier is rebated back to the auto manufacturer. So while it makes perfect sense to some, to others it looks like a subsidy for exports and unfair competition.

Continuing, if that same car is sold in the UK, the automobile company would have paid a VAT to the steel producer and the end buyer in the UK would also pay a VAT for the finished product. No rebate given to anyone.

It is not hard to understand how that can be and is construed differently.

This same concept applies to the DR (ITBIS all along the supply chain with some exemptions), although I do not believe they have or even need a rebate system for goods exported.

Respectfully,
Playacaribe2
 

CristoRey

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Apr 1, 2014
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Since the beginning of his term, Trump acts like a person with bipolar disorder in a manic phase.

For those who doesn't know what's that: During a manic phase of bipolar disorder, individuals experience a period of abnormally elevated, expansive, or irritable mood, often accompanied by increased energy, activity, and impulsivity, which can lead to poor judgment and risky behaviors.

I hope his trade wars won't affect prices in DR, because everything here is already too expensive for a third world country.
Considering the alternative...

The sky isn't falling, he's simply doing what should have been done decades ago.
 

CristoRey

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Apr 1, 2014
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I can confirm IMPOSDOM worked perfectly in POP at least back in 2010-2015. I was sent Christmas cards by my parents in EU and it took a couple of weeks but they arrived perfectly.
I used to travel the world often. When doing so I would always send my mother a post card every time I visited somewhere new. Out of 40 or so different different countries, mailing one from the Dominican Republic (Puerto Plata 2012) was the only card she never recieved.

These countries want low tariffs?
No problem but America expects the same courtsey especially when taking into account how much free taxpayer dollars they have been recieving from US citizens for generations.
 

keepcoming

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aarhus

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It's an interesting policy/experiment. Will it lead to more or less international trade in the long run ? I think he is right that companies will manufacture more in the US. I read about European companies considering it. I don't blame them for trying this.
 
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keepcoming

Moderator - Living & General Stuff
May 25, 2011
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It's an interesting policy/experiment. Will it lead to more or less international trade in the long run ? I think he is right that companies will manufacture more in the US. I read about European companies considering it. I don't blame them for trying this.
The question is how will it affect the DR?