Who bears the economic burden of tariffs?
Tell Me More
As explained in the textbook Introductory Economics (and other credible sources), "The burden of the tariff is normally split between consumers and foreign producers. The division of the burden depends upon the type of good involved." In general, when dealing luxury goods (like fine wines), more of the burden falls on foreign producers. When dealing with necessities (like basic foods), more of the burden falls on consumers in the form of higher prices.
Articles by Topic