Who pays the tariff can depend on the agreement between the buyer and seller. Who pays for the tariffs? While tariffs may seem to penalize foreign producers by making their goods or services less competitive, the reality is that us consumers and.
Explore how trade costs work, who’s responsible, and how to manage them for smarter global trade. Trade terms, known as incoterms, decide who covers the cost. Tariffs are paid by the importer, or an intermediary acting on the importer’s behalf.
When an american business imports goods, u.s. But it is often someone else who ultimately shoulders the cost. In the u.s., congress holds the ultimate authority to set tariffs, but the president can. Customs and border protection sends it a tariff bill that the company must pay before the merchandise can enter the country.
In most cases, tariffs are imposed by a government and enforced at its country’s border.