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Quixote1818

(31,147 posts)
14. It can also depend on the product and what it is made of. For instance an aluminum bat might have several different
Mon May 12, 2025, 10:01 AM
May 2025

tariffs on it.

From ChatGPT after I asked this question:

Here's how it typically works:
The 25% aluminum tariff is a Section 232 tariff specifically targeting aluminum and aluminum-based products, applied in addition to standard tariffs.

The 30% tariff you’re referring to is likely the temporarily reduced Section 301 tariff on general imports from China.

Combined Effect:
If both tariffs apply to the same item (which they can), they are applied sequentially, not simply added together.

Let’s say:

The declared customs value of the bat is $100.

Here's the likely tariff calculation:

First, the 30% Section 301 tariff applies:
$100 × 30% = $30

Then, the 25% aluminum tariff is applied to the new subtotal ($100 + $30 = $130):
$130 × 25% = $32.50

Total tariffs:
$30 + $32.50 = $62.50, or 62.5% effective rate

So, yes, it ends up being more than 55% due to the compounding method.

Recommendations

2 members have recommended this reply (displayed in chronological order):

The price of Greek yogurt and Mexican mineral water went up 30% almost immediately in the store Walleye May 2025 #1
there are always multiple factors in any specific market, so it's often a mess to tease out what's going on unblock May 2025 #4
I think your last paragraph describes the situation quite accurately Walleye May 2025 #6
"many industries are quick to increase prices and slow to decrease them" Like when the cost of crude oil goes up mitch96 May 2025 #22
Most Greek yogurt is not from Greece. Ms. Toad May 2025 #12
Maybe price gouging but it doesn't seem too different from normal business practices. Walleye May 2025 #13
Technically correct Aviation Pro May 2025 #2
only some of the costs go up in proportion to the costs of the imported goods. unblock May 2025 #7
I'm thinking 145% plus 30% SheltieLover May 2025 #3
A tariff on everything will have a significant effect on costs for consumers, regardless Ocelot II May 2025 #5
absolutely true. unblock May 2025 #10
Good post Prairie Gates May 2025 #8
Google says: The average gross profit margin for a small retail business typically falls between 30% and 53%, Doodley May 2025 #9
👇 Beachnutt May 2025 #11
Way more than 30%. But yeah, these huge, broad-based tariffs are incredibly destructive to our economy. unblock May 2025 #19
It can also depend on the product and what it is made of. For instance an aluminum bat might have several different Quixote1818 May 2025 #14
Yeah. It quickly gets very complicated. unblock May 2025 #20
Thanks! This is a clear description of the factors involved with any price increases frogstar0 May 2025 #15
Risk Johnny2X2X May 2025 #16
Indeed, there is a cost just from the uncertainty. unblock May 2025 #21
Greed Always Wins Aepps22 May 2025 #17
You still have on COO China JustAnotherGen May 2025 #18
100% correct. WarGamer May 2025 #23
Latest Discussions»General Discussion»tariff math: no, a 30% ta...»Reply #14