Trump Tariffs: Who Pays and Who Collects?

A Bloomberg guide explains who pays and who collects the tariffs imposed by the Trump administration on imports to the US.

What is a tariff? A tariff is a tax levied on an import or export, usually calculated as a percentage of the good's value.

Why did the US impose high tariffs? Former President Donald Trump pledged to boost domestic production and reduce US dependence on other countries.

Who pays the tariffs? Tariffs are paid by the importer or a broker. The cost is ultimately shared among exporters, importers, and consumers.

How are tariffs collected? The US Customs and Border Protection (CBP) is responsible for enforcing regulations at ports of entry. The money is deposited into the Treasury Department's General Fund.

Purchases from foreign exporters: Packages worth $800 or less are no longer entering duty-free. Goods shipped via postal system are subject to fees.