Understanding Trump Tariffs on Your ElRat Designs Order
What Are Tariffs?
Tariffs are import taxes paid by the importing country (the US), not by the exporting business (us in the UK). Despite common misconceptions, Trump's tariffs are a tax on American consumers, not foreign companies.
Why Are Our US Prices Higher?
Under the new rules, the exporting company (In this case ElRat Designs) has to collect the tax and pay it to the customs authority before the item arrives on US soil. This means that I now have to pay Royal mail the tariff on top of the standard shipping price, before I am allowed to send your item, then Royal Mail as the last mile provider pays the duty to the US authority.
Extra information to ship
I now need to add an email address and phone number to all items shipping to the USA via Royal Mail, including the untracked option. These are not printed on the physical shipping label but rather in the electronic data that is attached to the shipment.
I thought the UK tariff was 10%?
Tariffs are based on the country of origin, NOT the shipping country, so, despite the fact that ElRat Designs is a UK company, and the UK tariff is 10%, the Gildan shirts are made in Bangladesh, and as such are subject to the Bangladesh tariff, meaning it is 20%, Totes are made in India and are subject to 50%, Badges, Keyrings and Paper prints are at the UK rate of 10%
ElRat Designs is not keeping this money, it is paid directly, to the Shipping provider (Royal Mail) so that they can pay the US import duty.
Trump Tariff amounts included in US pricing, as charged by the shipping provider:
These percentages are set by US trade policy, not ElRat Designs
- T-Shirts/Hoodies: 20%
- Totes: 50%
- Art Prints: 10%
- Badges: 10%
- Keyrings: 10%
What happens if you don't pay?
It is not possible for me to ship your item without paying the tariff. Even if it was, items arriving in the US without the duty being paid, will be returned, or destroyed.
Honesty is the way forward
I have a tendency for honesty... a little too much sometimes I'm told. I have chosen transparency over hidden costs. Here, you see exactly what you're paying for. I still see too many videos of people convinced that tariffs are paid by the exporting country. What Trump will not tell people outright is that this is a tax on American citizens, you may well get some revenue from this, but Americans are paying that revenue, not us.
Questions?
Contact ElRat if you need clarification about pricing or tariffs.