Tariffs Tax Consumers

Source: Free Association
by Sheldon Richman

“We seem to forget that a tariff is a tax. It is formally levied on importers, not on foreigners or things, but since it can usually be passed along, it ends up as an indirect tax on consumers. The point of tariffs is to protect certain domestic businesses and their employees from formidable foreign competitors by raising import prices and reducing consumer choices. Higher prices! Less choice! Raising import prices gives domestic businesses room to raise their prices — that’s the point. Why have a tariff otherwise?” (02/09/24)