Friday, November 15, 2024

Tariffs are paid by American Consumers

 Based on the information provided in the search results, there are some key points to understand about who pays tariffs and duties:


1. Tariffs are not paid by the exporting country, but rather by the importer of goods. The exporting country does not directly pay the tariff[1][2][4].


2. In the United States, tariffs are paid by the importer - typically a domestic company or entity bringing goods into the country. The importer pays the tariff to U.S. Customs and Border Protection when the goods enter the country[2][4].


3. Ultimately, the cost of tariffs is often passed on to consumers in the form of higher prices for imported goods[3][4].


4. Tariffs are collected by the customs authority of the country imposing the tariff. For example, in the U.S., Customs and Border Protection collects tariffs on behalf of the Commerce Department[1].


5. While government leaders may claim that foreign countries are paying tariffs, this is not accurate. For instance, when the U.S. imposes tariffs on Chinese goods, it is U.S. importers who pay the tariff, not the Chinese government or exporters[4].


6. The impact of tariffs can vary depending on market conditions and the ability of importers to absorb costs or find alternative suppliers. However, in many cases, the increased costs due to tariffs are reflected in higher prices for consumers[3][4].


In summary, it is not the exporting country that pays tariffs, but rather the importing businesses and ultimately consumers in the country imposing the tariffs who bear the cost.


Citations:

[1] https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp

[2] https://dornsife.usc.edu/news/stories/tariffs-explained-by-economics-professor-trade-expert/

[3] https://finance.yahoo.com/personal-finance/what-is-a-tariff-194059448.html

[4] https://taxpolicycenter.org/taxvox/what-tariff-and-who-pays-it

[5] https://www.trade.gov/import-tariffs-fees-overview-and-resources

[6] https://www.pbs.org/newshour/economy/trump-favors-huge-new-tariffs-how-do-they-work

[7] https://www.cfr.org/backgrounder/what-are-tariffs

[8] https://www.law.cornell.edu/constitution-conan/article-1/section-9/clause-5/export-clause-and-taxes

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