Who actually pays the tariffs? US firms and consumers, through higher prices
When the Trump administration imposed tariffson various imports in 2018, the stated purpose was to boost US industries and punish foreign exporters. But rather than hurting foreign exporters, the economic evidence shows it is American firms and consumers hardest hit by the Trump tariffs. The tariffs resulted in higher prices for a wide variety of goods that US consumers and businesses purchase. The Biden administration has continued and even increased many of the Trump tariffs—drawing some attention as inflation rises. And while tariffs do raise prices for American consumers, their impact on economy-wide inflation is relatively small.
