Tariffs Are Taxes Trade War Trucker Hat

Trade War. It’s all great fun until someone gets stuck with the bill. Indeed, tariffs are taxes paid by the companies whose products have the tariffs imposed and remitted to the government treasury. These companies then have the choice of absorbing the cost or passing the increase on to their customers. Other companies who are not subject to those tariffs will likely raise their prices to match. In the end, the consumer is most likely to receive a stealth tax bill in the form of increased prices at the cash register and inflation in the economy.