Since Donald Trump become US President again. He is imposing and announcing trade tariffs on many countries. But who will responsibile to pay these tariffs may be least US peoples thinking about it. These tariffs will directly comes from US peoples Pockets. Here you should know How? if you don’t know it :
How Tariff Works :
1. Who Pays ?
When a country imposes a tariff on imported goods, the importing company (business) typically pays the tariff at the border.
However, the company usually passes this extra cost on to consumers in the form of higher prices. In some cases, businesses absorb part of the cost, reducing profits or cutting jobs.
2. Who Receives the Money ?
The government (customs authority) collects the tariff revenue, which can be used for public spending.
Key Points :
• Consumers bear the burden through higher prices, especially if domestic alternatives are more expensive.
• Producers in the importing country may benefit from less foreign competition.
• Governments gain revenue, but if tariffs reduce trade, overall economic growth may suffer.
Example :
If the U.S. imposes a 20% tariff on Chinese or Indian products electronics :
A U.S. retailer importing $1,000 worth of goods pays an extra $200 to the U.S. government.
The retailer then raises the price for American consumers.
“ So of course these extra tariff amounts or money will paid by the US peoples. And this will lead inflation in the US. ”