Just a real quick question for Americans - no angst or fighting.

When a product from overseas - let’s use China as an example - has a tariff on it, you know it’s the American public who pays the higher expense to cover the tariffs, not the exporter right?

I’m just asking because a Texan friend of mine thought tariffs on Chinese products was paid by the Chinese government. But it’s not. It’s the American consume who pays the higher cost.

I know it’s obvious but I just thought if check everyone understood the tariff costs the consumer, not the exporter.

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SumKindaMunster · 51-55, M

Not exactly, the importer pays the tariff, but the expectation is that the cost is passed to the consumer. This encourages more domestic consumption as prices for domestic goods are more attractive than costly competitors from overseas.

Who pays for tariffs?

In a literal sense, companies that are importing goods from international trade partners pay the tariff fees to CBP at the port of entry within 10 days. But as an economic policy, tariffs have implications beyond the money exchanged at the border.

According to the Bureau of Labor Statistics (BLS), this indirectly raises domestic prices on goods as supply-and-demand forces often push the burden onto consumers in the importing country.

https://usafacts.org/articles/what-are-tariffs-and-how-do-they-work/

WintaTheAngle · 41-45, M

@SumKindaMunster That's right. We’re saying the same thing different ways.

The exporter pays the tariff and raises the cost to cover his expense.

My friend thought the foreign country paid the tariff at the point the export and the customer would still pay the lower original price.