Why is this in particular more notable than the other thousands of companies suing for tariff relief? (In particular, V.O.S. Selections.)
I've never heard of V.O.S. Selections.
Nintendo Sues U.S. Government for Tariff Refunds
21–30 of 55 posts
Re: Nintendo Sues U.S. Government for Tariff Refunds
#22article link: https://aftermath.site/nintendo-tariffs-sue/
Re: Nintendo Sues U.S. Government for Tariff Refunds
#23Re: Nintendo Sues U.S. Government for Tariff Refunds
#24Can someone ELI5 how this would work? Is it possible to accurately calculate the amount, with the tariff percentages changing on a weekly basis? If companies do get refunds, do they just keep it? After all, it was the end user who paid/pays, isn’t it? Also, do/will these companies drop prices if/when tariffs are reversed?
You'd have receipts.
Every shipment from overseas would essentially have a line item for tariffs due. Just add them up.
Re: Nintendo Sues U.S. Government for Tariff Refunds
#25So if they win, the US taxpayer will pay for it?
So hold on. The US taxpayer first paid the tariffs themselves. Next he has to pay compensation for the tariffs he himself paid?
Essentially yes. Companies paid the tariff costs, largely passed this on to consumers via higher prices, and now companies are due the tariff costs back. Consumers of course won’t get anything back.
Well done America.
Re: Nintendo Sues U.S. Government for Tariff Refunds
#26Can someone ELI5 how this would work? Is it possible to accurately calculate the amount, with the tariff percentages changing on a weekly basis? If companies do get refunds, do they just keep it? After all, it was the end user who paid/pays, isn’t it? Also, do/will these companies drop prices if/when tariffs are reversed?
The smartest comment I've seen was a proposal to use a negative tariff until the refunds are offset. At least in that case there is some bit of chance that the consumer gets their money back since the supply curve should shift up lowering apparent prices until the negative tax fades off. I'm sure many will point out all the flaws with that and the fact some of it will be captured as profit anyway, but it seems better than dumping 100% of it to profit which is what happens if you just refund to the importer of record.
Re: Nintendo Sues U.S. Government for Tariff Refunds
#27Earlier quoted context omitted.
Certain companies are well-known for their legal teams. Qualcomm is one (often described as a legal company that employs some engineers). Nintendo is the other. As a result, Nintendo's legal team is far more likely to ensure they get refunded, and quickly. They could provide a template for others to follow.
Hmm, I would have thought of Oracle first. (EDIT: I just mean as a litigious company, well-known for its legal team.)
Trump is too useful to Ellison right now, he isn't going to derail that gravy train over a few tens of millions of dollars.
Re: Nintendo Sues U.S. Government for Tariff Refunds
#28Why is this in particular more notable than the other thousands of companies suing for tariff relief? (In particular, V.O.S. Selections.)
I've never heard of V.O.S. Selections.
Re: Nintendo Sues U.S. Government for Tariff Refunds
#29Earlier quoted context omitted.
The administration already lost and the tariffs were found to be illegal, this is Nintendo wanting their money back. Taxpayers already paid for it, companies raised their prices to compensate.
Yes but the sleight of hand here is to just simply say "taxpayer." The taxpayer that paid the tariff was the consumer. The fact Nintendo actually wrote the check is largely accounting, this was passed on to the consumer. The taxpayer that receives the refund is Nintendo, straight into their profits. So the taxpayer paying and the taxpayer receiving are totally different. This is basically like regressive welfare wher…
Yeah the Switch 2 (launched after Liberation Day) costs $449 in the US and 49,980 yen (~$316) in Japan. I doubt Nintendo will be lowering the price of the console outside Japan anytime soon.
Re: Nintendo Sues U.S. Government for Tariff Refunds
#30Can someone ELI5 how this would work? Is it possible to accurately calculate the amount, with the tariff percentages changing on a weekly basis? If companies do get refunds, do they just keep it? After all, it was the end user who paid/pays, isn’t it? Also, do/will these companies drop prices if/when tariffs are reversed?
The way that tariffs work is, some specific person (often a corporate person) performs the act of importation into the United States, and that person is charged an amount which they need to pay before they're allowed to take their goods from the warehouse. In this case Nintendo is that person, and both they and the government presumably have records of what they paid.
Whether some downstream consumer of those imported goods paid a price that would have been lower if not for the tariff is a commercial question between them and whoever they paid. Maybe they would have, maybe they wouldn't have. There isn't any objective way to calculate what the price of suchandsuch Nintendo product would have been in the counterfactual.