- Tariffs are indirect taxes imposed on imports to make foreign products more expensive and encourage local consumption.
- They are crucial for international trade and economic relationships, impacting the price of goods and services.
- Businesses must understand tariffs as both economic instruments and tax mechanisms to make informed decisions.
- Tariffs are paid by importers but costs are often passed to consumers, affecting supply chains and competitive landscapes.
- Recent US tariffs have caused tensions with countries like China, Canada, Mexico, and the European Union.
- Incoterms govern cost, risk, and responsibility allocation in international trade.
- Delivered Duty Paid (DDP) Incoterms require sellers to cover all costs, risks, and import duties, including tariffs and taxes.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
