Who pays tariffs?

[OtterMan68]

Trump insists exporting companies and countries pay tariffs on goods imported into the US

Economists and importers say it's the importers who pay tariffs on imports.

Who is right?

Importers

Exporting countries/compaies

[Anonymous]

In the case of Chinese Tarrifs, its actually china for the most part as their exporters have actually lowered their prices to remain competitive.

Normally its the consumer, but that is only true if there is a comparable amount of market power. Basically both sides have to buy a comparable amounts of goods/services from each-other and the cost of each has to be close to it's actual cost.

If that doesn't exist as it does not with China in many respects. The exporting economy has nothing of equal value to retaliate with, while losing market share if they don't lower their own prices.

[DrPepper12]

Omg this is Eco 101. There's tariffs on imported goods that the importer passes on to the domestic consumer.

CONSUMERS OF FOREIGN GOODS PAY TARRIFFS! Trump is... Get this... LYING!! He's a fool and if his cult believes him it's just example #856,304 of them voting against their own interests

[exitseven]

The exporting country pays since nobody will buy their stuff if it is not cheaper than the American made product.

[OtterMan68]

so the billions in tariffs trump says China paid to the US in tariffs is metaphorical?
Look up the research: consumers and importers paid Trump's tariffs.
Tariffs increase prices and reduce competition. Reduced competition = reduced innovation.
Also, when other countries retaliate, it hurts the US because we export a lot of agricultural products.
Argentina and Brazil are both hoping Trump wins and starts trade wars, so countries will buy their ag products instead of ours.

[DrPepper12]

To quote Andy DuFrane, "How can you be so obtuse?"

[exitseven]

the only reason people buy foreign made goods is because they are cheaper. If they are not cheaper nobody would buy them. The chinese must drop the price for their product or else stop producing it.

[BarryLiverstone]

Both are right

[OtterMan68]

how so?

[BarryLiverstone]

Because one is direct and one is indirect

[OtterMan68]

how does the exporting country or company pay? They are not charged. The importer is charged

[BarryLiverstone]

Indirectly

[OtterMan68]

how does their money end up in the US treasury because of tariffs?

[BarryLiverstone]

That’s another question.

[OtterMan68]

but if you're right, money from the exporting country or company is paid to the US. How does that happen?

[BarryLiverstone]

It’s transferred

[OtterMan68]

how? You have not explained that

[BarryLiverstone]

I don’t need to explain. I’ve answered your initial question that both are right

[BarryLiverstone]

Can you say how it happens?