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
Tariffs are a method governments use to protect products made in that country. The people in your country raise wheat, but so does another country, and their wheat is cheaper or better, so the government puts a tariff on foreign wheat to raise the price making the foreign wheat less desirable hence people buy domestic wheat. The key here is that the tariff raises the prices of foreign wheat.
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