Import Inflation

Despite what you may have heard, tariffs are taxes on imported goods which the domestic importer usually pays at the border or point of entry. It's no surprise that some of this additional cost is then passed to consumers (a percentage that typically increases over time). When most people think about this process, it is in relation to finished goods. However, tariffs also affect imported inputs used by US manufacturers, reducing their competitiveness and further raising costs.

• Tags:
• imports,
• economy,
• inflation