this post was submitted on 06 Apr 2025
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Explain Like I'm Five
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There are two main ways that tariffs are paid when they reach the destination country: 1. the importer pays (most common) or 2. the exporter pays (least common but not rare). In either case, when the importer pays (1 above), they either a) add the tax to the price for the cosumer of that product or b) they take the hit, or the exporter (2 above) a) adds it to the price of the exported product or b) takes the tariff as a loss of margin. 99% of the time, the end consumer ends up paying the extra cost, companies need to keep their margins so the end consumer prices goes up