Origin Dictionary / OD-086
Tariffs
A tariff aimed abroad can show up at your local checkout.
01Dictionary Meaning
A tariff is a tax imposed on imported goods, usually collected by the importing jurisdiction from the importer responsible for the shipment.
02What People Think
"The exporting country pays it."
03What’s Underneath
The importer makes the payment to customs. Who ultimately bears the cost is a different question.
A supplier may accept a lower price. An importer may absorb some cost through a smaller margin. A retailer may charge customers more. Exchange rates and available alternatives can affect how the burden is shared.
Domestic producers can gain protection from competition, while businesses using imported inputs may face higher costs. The border measure can therefore rearrange incentives well beyond the goods named in the announcement.
04The Game
Who pays at the border, who has enough negotiating power to pass the cost onward, and who gains from the changed prices?
05One Line
The tariff is collected at the border. Its cost can travel further.
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References 1
- Tips for New Importers and Exporters
US Customs and Border Protection