Scott Lincecum

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.

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

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

So it gets put into another thing that gets put into another thing. So engines are another example of this. They start out as an engine block. They keep getting more stuff added to them. There is a little buried provision in both of the Canada and Mexico executive orders, not to get too wonky on you, that is barring what we call duty drawback.

So it gets put into another thing that gets put into another thing. So engines are another example of this. They start out as an engine block. They keep getting more stuff added to them. There is a little buried provision in both of the Canada and Mexico executive orders, not to get too wonky on you, that is barring what we call duty drawback.

So it gets put into another thing that gets put into another thing. So engines are another example of this. They start out as an engine block. They keep getting more stuff added to them. There is a little buried provision in both of the Canada and Mexico executive orders, not to get too wonky on you, that is barring what we call duty drawback.

This is a system that effectively allows importers to not pay duties if they're exporting the same thing they just imported. So let's say you import an avocado, you make guacamole, you put that in a container and you export the guacamole. You can actually get a refund on the tariff you paid on the avocado. We call that duty drawback.

This is a system that effectively allows importers to not pay duties if they're exporting the same thing they just imported. So let's say you import an avocado, you make guacamole, you put that in a container and you export the guacamole. You can actually get a refund on the tariff you paid on the avocado. We call that duty drawback.

This is a system that effectively allows importers to not pay duties if they're exporting the same thing they just imported. So let's say you import an avocado, you make guacamole, you put that in a container and you export the guacamole. You can actually get a refund on the tariff you paid on the avocado. We call that duty drawback.

Makes perfect sense because it's not actually entering the United States for consumption. You're actually just processing it. And we want to get that processing value, right? So that's normal.

Makes perfect sense because it's not actually entering the United States for consumption. You're actually just processing it. And we want to get that processing value, right? So that's normal.

Makes perfect sense because it's not actually entering the United States for consumption. You're actually just processing it. And we want to get that processing value, right? So that's normal.

They removed duty drawbacks. So I've heard from several people. who are in these supply chains who are like, what, what the heck, what are we even going to do?

They removed duty drawbacks. So I've heard from several people. who are in these supply chains who are like, what, what the heck, what are we even going to do?

They removed duty drawbacks. So I've heard from several people. who are in these supply chains who are like, what, what the heck, what are we even going to do?

Yeah. And you know, I'm all sanitized. So we have this question of compounding tariffs. So if you go back to the automotive example, You could have a good that gets a tariff as its starting point, gets incorporated into something, crosses again, gets another tariff, crosses again, gets another tariff.

Yeah. And you know, I'm all sanitized. So we have this question of compounding tariffs. So if you go back to the automotive example, You could have a good that gets a tariff as its starting point, gets incorporated into something, crosses again, gets another tariff, crosses again, gets another tariff.