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
To answer your question, yes. It’s also happened.
If china wants to sell us a TV for 100 dollars, then has a 10% tariff tax applied to it, then China will then sell us what was a 100 dollar TV for 110, passing the tax onto consumers.
Then in retaliation, other countries can apply tariffs to us as well. It’s been a problem in the past.
Latest Answers