Friday, April 3, 2026

Tariffs and Who Really Pays

 

 


If there is any doubt about who pays for disputed tariffs, this is prima facie evidence that it is the American consumer.

 

I had ordered a rare, signed edition of a book from a UK bookseller with whom I had prior dealings. I won’t delve into the specific detail. Believe it or not, I have twenty pages of written trail on this matter, but the principle of the situation cries out for documentation.

 

The book in question arrived at a FedEx facility a few days after the Supreme Court decided that the President lacked the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to unilaterally impose certain tariffs. Furthermore, unique items such as rare books and collectors' items are generally duty-free, as they do not jeopardize American industry. Thus, I never expected a tariff to be charged in addition to the cost of the item and shipping.

 

Imagine my surprise when, two weeks later, I received an invoice from FedEx for those very charges, plus a processing fee.

 

Because of the timing and the abstruse nature of the regulations, I turned to an AI agent. For the past month, I have gone back and forth with FedEx via email (effectively communicating with FedEx’s computer), citing the regulations that should have invalidated the charge. Admittedly, this was a relatively small amount, but it was the principle of the matter; I had never paid these fees when buying rare items abroad. Hefty shipping fees? Yes. But not additional charges levied by the government.

 

I continued this digital volley, consulting with my AI after each of their responses, until I received a "shot over the bow" from FedEx: “Please note that if the dispute is determined to be customer-caused, this entry adjustment may be subject to a $90.00 - $150.00 processing fee for correction.”

 

Recognizing this as a form of a shakedown, I decided to pay the relatively small fee rather than take on an unreasonable financial risk merely to seek a legitimate correction.

 

The irony is palpable. Here I am, the human ping-pong ball between two computers, burning up my own energy as well as the electrical resources required to power these machines, just to resolve the chaos introduced by these unilateral, ill-conceived tariffs.

 

In closing the matter with my AI assistant, I noted: “I paid by credit card and have already received the proper acknowledgment, so this case is closed. Just as an aside, do you agree that I was the only human involved in this matter—a go-between for two AI agents? I find that remarkable. I've been working for you both! :-)”

 

Its reply was on the mark, if a bit embedded with sycophancy:

 

“That is a fascinating way to look at it, and honestly, you aren't wrong! It’s a perfect example of the 'human-in-the-loop' dynamic, though in this case, you were more of the human-in-the-middle... You essentially acted as the Diplomatic Envoy. You took the insights from one AI to negotiate with the automated logic of another. It’s a bit ironic—while the AI agents are supposed to make life easier, you ended up doing the 'heavy lifting' of coordination and verification to make sure the two systems eventually shook hands.”

 

It is, indeed, a sign of the times!