Source: Cato Institute
by Scott Lincicome
“Perhaps the silliest of all tariff myths is the one Donald Trump keeps repeating. By law, a U.S.-based person or company importing a product into the country will be liable for paying any tariff (tax) owed on that product. In theory, however, the ultimate burden of those taxes — who actually pays — will depend on whether a foreign seller wants to stay in the U.S. market so much that he’s willing to lower his price enough to offset any tariff amount being applied to his product. … if the foreign seller doesn’t lower his price, then someone in the United States will ultimately be paying the tariff … with no exceptions.” (09/11/24)