A proposed reduction in U.S. tariffs on Chinese toys still had no new rate or start date in the BBC's October 14 report, despite a recommendation following talks between President Trump and Chinese leader Xi Jinping. A U.S. public consultation was still required.
The report puts the basic tariff at 12.5%, with some toys subject to more. American importers pay the duty to U.S. Customs and Border Protection, and the calculation uses the manufacturing price rather than the price shoppers see on a shelf.
The BBC illustrates that distinction with a toy selling for $30 and costing $6 at the factory. At the basic rate, the duty in that example is 75 cents, not 12.5% of the $30 retail price. The $6 factory price covers materials, production costs and the manufacturer's profit.
Adding 60 cents for freight gives the example a combined manufacturing, shipping and basic-duty cost of $7.35. The remaining retail revenue includes U.S. delivery, the toy company and the retailer; it is not all profit.
