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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DDonde · 31-35, M

Yep.
I think the rationale is supposed to be that it would incentivize/force domestic companies to purchase domestically produced materials, rather than from abroad. But at the end of the day it will still result in an increase in cost for the end consumer, which will manifest as more inflation. Which the president has actually warned the US public about. But there's also the aspect of the tariff where the threat of imposing it is also just being used as a political weapon, rather than for a supposed economic benefit to the US.