Exporters do not pay for tariffs on imports into a foreign country unless the agreement otherwise, i.e., under delivered duty paid (ddp). Trade terms, known as incoterms, decide who covers the cost. A common misunderstanding is that foreign exporters pay the tariff.
Exporters in the foreign country do not directly pay tariffs. However, they may be impacted indirectly if their goods become more expensive and less competitive in the destination market. While the tariff is paid directly by the importer bringing goods into the country, its financial burden often gets passed down the supply chain.
In practice, it is the domestic importer, typically a local business, which pays the import duty when goods enter. Importers pay tariffs when goods enter the country, but the cost usually gets passed down. Us president donald trump on wednesday imposed sweeping tariffs that target key. In most cases, the importer is.
This was evident in the 1850s when southern landowners paid a heavy price for. Who pays the tariff can depend on the agreement between the buyer and seller.