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Showing posts with the label Tariffs

Trade And Tariff Facts

Trade And Tariff Facts Tariffs are taxes on the end user. Trade is between individuals or companies. Trade is voluntary and will not happen if both sides are not happy with the outcome, whether one side or the other has tariffs or not. How trade and tariffs work Sure, suppliers pay them at the port, but it would be foolish to think that the seller is going to absorb that cost. Such costs are regained by increasing prices to the consumer. A country decides to place tariffs on products from another country. Products from manufacturers from that country are charged a tax, that is, a tariff. The manufacturer raises prices to cover the cost of the tariff, thus passing it onto the receiving countries' buyers. Thus, the tariff is a tax on the people of the country who levies it. What if the other country has tariffs on your country's products? Much is made of trade deficits and other countries "beating" us on tariffs when they place them on our products. Realize t