ANIMATION: Who Pays For Tariffs?

let's start simple what is a tariff it's basically a tax on an import it gets a little more complicated from there say there's a 10% tariff on lithium batteries imported from China if a shipment costs $100 whoever's importing it to the US will pay $110 to get it into the country that money goes to the government and leaders sign off on paperwork that says tariff paid but what happens to that extra cost the importer had to pay in some cases it gets passed on to the customer in the form of higher prices in other cases the importer eats the cost that cuts into profits and could have other impacts like offering fewer hours or putting off employee raises but that's not to say China isn't paying a price its exporters have to weigh a couple options discount the price to make up for the tariff or risk losing a consumer to a tariff free option some experts say DS tariffs will hurt China in the long run as American importers find other sources that tariff money isn't just piling up the government has launched multiple rescue programs for farmers to make back money loss in the trade war