powmaxi on Nostr: When the government imposes a tariff on imported goods, it means that foreign ...

When the government imposes a tariff on imported goods, it means that foreign suppliers must pay an extra fee to bring their products into the country. However, businesses don't just absorb this cost—they pass it on to consumers.

For example, if the U.S. places a tariff on electronics from China, the Chinese manufacturer will raise the price to cover the extra cost. American retailers who buy from them will then increase their prices accordingly. By the time the product reaches store shelves, the end consumer—the American buyer—is the one paying the higher price.

So while it may seem like tariffs punish foreign companies, in reality, they make goods more expensive for everyday Americans. Don’t be fooled into thinking tariffs are a cost-free way to protect domestic industries—they are effectively an indirect tax on consumers.
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