how do tariffs on exports work. The R’s are saying increased tariffs won’t cause manufacturers/distributors to pass the costs onto consumers here in the US. I was wondering if American manufacturers follow that same model. Are goods exported to foreign countries outside the US subject to tariffs, and are those tariffs absorbed, or passed onto foreign consumers?
In: Economics
The term you’re looking for is [“tax incidence.”](https://en.wikipedia.org/wiki/Tax_incidence) The way the increased cost of any tax, tariff, sales, etc, is split between the consumer and producer depends on the elasticity of supply and the elasticity of demand for that product. So, it really depends on the product.
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