Scott Lincecum

automakers aircraft manufacturers energy pipeline producers you name it these are the folks that are going to be eating these new higher prices as well as any higher import prices as well i love that little economics lesson okay just one more time on crossing the border i want you to do the sesame street style all right so we've got like you're imagining it's a cartoon i guess sesame street isn't a cartoon we're gonna do a pbs cartoon

automakers aircraft manufacturers energy pipeline producers you name it these are the folks that are going to be eating these new higher prices as well as any higher import prices as well i love that little economics lesson okay just one more time on crossing the border i want you to do the sesame street style all right so we've got like you're imagining it's a cartoon i guess sesame street isn't a cartoon we're gonna do a pbs cartoon

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.

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.

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.