“Tariffs on imported goods are a new revenue source paid by exporters for the privilege of selling their product in America.”
No. The foreign exporters do not pay the tariff. The U.S. importer pays the tariff at the time the goods are checked by U.S. customs at the port of entry.
When costs are passed on to consumers, it does not mean the consumer will then buy a “U.S.” made item, becomes the reality is it does not mean there is a comparable U.S. made item. For most item, a comparable item is another foreign import with a company who as managed to keep their prices competitive by cutting costs elsewhere, not by avoiding the tariff.
As to whether or not the tariff costs have been inflationary? It seems not.
That does not change either that tariffs ARE paid by the U.S. domestic importer, amounting to a tax for them, and the tariff revenue has not changed the federal deficit and debt outlook materially.
I stand corrected. However Trump is collecting new tariff revenue as America had low tariffs while foreign countries like the EU, South Korea, Japan and China practiced unfair trade by penalizing American products with high tariffs if not an outright ban on their entry.
When a product is imported, the importer of record pays the tariff.
Here’s how it works:
ChatGPT: Who actually pays the tariff?
The importer—usually a company in the destination country—must pay the tariff to that country’s customs agency before the goods are released.
This cost is often later passed on to consumers through higher prices, but legally the importer pays it.
Pogue Colonel: Then how about getting with the program? Why don’t you jump on the team and come on in for the big win?