RE: Who is paying the taxes? Simple question.(nm)
Posted on: July 27, 2025 at 14:22:14 CT
BH O'bonga MU
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Foreign products are cheaper, because their costs of production are much lower. When tariffs are imposed they have some wiggle room. Initially, the tariffs are paid by the American importer. Typically, the foreign exporter is forced to respond with lower prices so that both he and his customer can maintain market share. If they fail to trim margins and raise prices to match the increase from the tariff to fall in line with domestic competitor, they likely lose market share.
Didn't you understand my first post on this thread? Margins and market share will determine whether and/or when the increase is passed on to the domestic end user.