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Cake day: July 26th, 2023

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  • Technically it isn’t.

    The company has a price for the product, importers import the product at that price (sometimes the importer will also be the manufacturer, but that doesn’t actually make a difference as far as the calculation is concerned), then some official shows up and demands an import tariff, the important pays the tariff.

    The shelf price is calculated as the total cost to the importer + a profit margin + sales tax. The tariff just gets lumped into the cost for the importer. Sales tax doesn’t make a distinction about how the price is arrived at.