Can you explain what you mean by MX and CA having to pay 25% more? A tariff is an import tax paid by the company doing the importing. So American companies that were importing those goods will now have to pay a 25% fee on top of what it previously cost to import them, which means that they will in turn raise the prices of their products to account for this new loss that they unexpectedly started incurring. The end result of that is that by raising their prices, us normal American citizens will have to pay more for those goods.
Foreign countries don't pay tariff costs. We have no way to enforce that, nor does it make sense for them to do so.
Login to reply
Replies (1)
What I meant by that was the companies in those countries would have to pay the duty to import their own goods into the US.
I did not consider American companies also having to pay this import tax, because the current administration did not communicate that. I assumed that the tariff was only on companies in those jurisdictions, and that countries would have to subsidize that expense
It did not appear clear to me that companies in the United States doing any importing would be subject to the same expense.