Scott Lincecum

No, it's by value. Typically by value. Sometimes they do it by weight or whatever, but most of our tariffs are what we call ad valorem. It's dumb Latin. It just means by value. So if you have a 25% tariff and you're bringing over $100 worth of avocados, you're going to get a bill at the border for $25.

They charge the importer, yeah.

They charge the importer, yeah.

They charge the importer, yeah.

That's actually a really important point. Mexico isn't launching avocados across the border. These are – I mean – Not yet.

That's actually a really important point. Mexico isn't launching avocados across the border. These are – I mean – Not yet.

That's actually a really important point. Mexico isn't launching avocados across the border. These are – I mean – Not yet.

Almost all trade has a willing consumer on the other end, an importer. So think of a company like Walmart. Walmart is buying from a seller in China or Japan or wherever, Mexico. And when the boat arrives with Walmart's purchases, Walmart is then actually taking possession of those at the border. And it's not a guy with avocados from Mexico.

Almost all trade has a willing consumer on the other end, an importer. So think of a company like Walmart. Walmart is buying from a seller in China or Japan or wherever, Mexico. And when the boat arrives with Walmart's purchases, Walmart is then actually taking possession of those at the border. And it's not a guy with avocados from Mexico.

Almost all trade has a willing consumer on the other end, an importer. So think of a company like Walmart. Walmart is buying from a seller in China or Japan or wherever, Mexico. And when the boat arrives with Walmart's purchases, Walmart is then actually taking possession of those at the border. And it's not a guy with avocados from Mexico.

It's actually, they're shipping it, Walmart's taking possession, and that's when they're paying the bill of customs.

It's actually, they're shipping it, Walmart's taking possession, and that's when they're paying the bill of customs.

It's actually, they're shipping it, Walmart's taking possession, and that's when they're paying the bill of customs.

So just last week on Cato, my RA and I did a blog post on the automotive sector and North American automotive supply chain. And we had this nice little map that we showed a single product because Bloomberg went out good for them. They actually tracked a single product that crossed the border several times to go into a car seat.

So just last week on Cato, my RA and I did a blog post on the automotive sector and North American automotive supply chain. And we had this nice little map that we showed a single product because Bloomberg went out good for them. They actually tracked a single product that crossed the border several times to go into a car seat.

So just last week on Cato, my RA and I did a blog post on the automotive sector and North American automotive supply chain. And we had this nice little map that we showed a single product because Bloomberg went out good for them. They actually tracked a single product that crossed the border several times to go into a car seat.

So in the olden days, so pre these executive orders, that widget, it was a capacitor, could actually cross the US-Mexico border the five times that it did, end up in a car seat, and have zero tariff supply. This time, it's going to get tariffed every single time it crosses the border. Why was it going across five times? Comparative advantage.

So in the olden days, so pre these executive orders, that widget, it was a capacitor, could actually cross the US-Mexico border the five times that it did, end up in a car seat, and have zero tariff supply. This time, it's going to get tariffed every single time it crosses the border. Why was it going across five times? Comparative advantage.

So in the olden days, so pre these executive orders, that widget, it was a capacitor, could actually cross the US-Mexico border the five times that it did, end up in a car seat, and have zero tariff supply. This time, it's going to get tariffed every single time it crosses the border. Why was it going across five times? Comparative advantage.

So you have certain factories in the United States are good at certain things, like creating circuit boards.