Importers typically bear the initial legal cost of tariffs but commonly pass at least some of those added expenses onto consumers through higher prices.
high
descriptive
Pass-through of tariff costs from firms to consumers varies by industry, market structure, and firm pricing strategies.
Tariffs imposed on imports are generally borne by the importer rather than by the foreign exporter.
medium
economic
Incidence of import tariffs commonly falls on the party that brings goods into the imposing country, affecting domestic pricing and costs.
Rapid or large changes in tariff rates can cause importers and manufacturers to change sourcing and production locations, accelerate shipments to meet customs or tariff deadlines, and incur additional logistics and compliance costs.
high
economic
General business response to volatile trade policy
Tariffs on imports are paid by importers who typically attempt to pass the higher costs to their customers, which can contribute to higher consumer prices and inflation.
high
conceptual
General economic effect of import tariffs on prices and inflation.