"Importers and consumers in the US bear 96 percent of the tariff burden."
Products with inelastic or less elastic demand we can skip over because it's pretty self explanatory.
Products like the random cheap widgets a lot of us would buy from random Chinese sellers are often high volume low margin products with a lot of competition. Think about stuff like a USB->TTL serial board that's basically two connectors, one cloned chip, and a few supporting components on a single layer PCB. Hypothetically this is an ideal case for free market economics and these things should have already been basically as cheap as they can be at every step in the chain.
For less competitive items, particularly lower volume specialty items, a vendor may also decide that it's just not worth sacrificing profits in other markets by letting them know there's room to come down. A lot of the independent hardware designers I've been wanting to buy things from sell out every batch one way or another so they just don't care, demand exceeds supply even if demand from the US is reduced. Others have decided the volatility of the situation just isn't worth it with the risk of products getting delayed or additional charges added resulting in chargebacks and lost products and have simply stopped selling to the US altogether.
That makes zero sense. You mean “by lowering the profit margin on the goods sold to the US by that specific company”.
Countries don’t pay tarrifs (bar state intervention), companies do.
But yes, it’s probably a mix of the two: raising prices and lowering profit margins.
https://www.forbes.com/sites/petercohan/2026/02/15/consumers...
The businesses in the other countries are, you know, businesses. Even if it were Chinese companies that were paying the tariffs, that will be baked into the cost of the good.
This is literally first-day economics. No such thing as a free lunch. The cost of the item that the end user pays should reflect all costs associated with production and distribution to that end user.
I have no idea how the fuck the rumor that these tariffs will be “paid by other countries” started. If there are suspicions that the tariffs are temporary then they might be willing to eat the cost temporarily so it’s not passed onto the consumer immediately, but that’s inherently temporary and not sustainable especially if it would make it so these companies are losing money.
A tariff or import tax is a duty imposed by a national government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods or raw materials and is paid by the exporter.
The economic burden of tariffs falls on the importer, the exporter, and the consumer. [Wikipedia]
It doesn’t matter who sends the actual tariff payment, it gets priced into the cost of the product.
Trump started threatening anyone who was going to do that, because he doesn't want his face attached to price hikes.
Eh, standard business school logic these days is that if you want to maximize profits, you should charge what the market will bear, not your costs + some fixed profit.
So if you're already charging what the market will bear, there may be more wiggle room to absorb some of the hit of tariffs, so long as it still leaves you making enough profit or in a favorable position. It still comes down to what maximizes tariffs: at higher prices, demand drops, but at lower prices, your profit/item drops.
Still, yeah, from what I understand, the bulk of the tariff costs were passed along to customers.
It's what POTUS was saying since day 1. That we've been getting ripped off and we're gonna make the other countries pay us etc etc etc.
It is, as I said in the post, obviously wrong - but that's where it comes from.
See also: disinformation that "other countries charge us the same tariffs", which turns out to be either a plain lie, or they mean VAT (a sales tax, like we have in the US).
"But we found that Trump’s so-called “reciprocal” tariff rates weren’t based on tariffs that other countries charged on goods coming from the U.S. Instead, the Office of the U.S. Trade Representative came up with the rates by dividing the size of a country’s trade imbalance with the U.S. in goods by how much America imports in goods from that nation. "
I don't recall seeing a split between domestic consumers and domestic companies, but I'm fairly sure that consumers are paying more than the 10% that foreign entities are.