‘Tariff-man’ Trump doesn’t understand how tariffs work…and that’s a BIG problem

Self-proclaimed “tariff-man” and former US president Donald Trump is notorious for attacking China for “unfair” trade practices and instigating the US-China trade war by increasing across-the-board tariffs in 2018.  

In fact, in his second bid for the 2024 presidency, he claims that if and when he becomes president again, he will increase tariffs on most goods to 10% and up to 50% for Chinese imports.

Mr. Trump often eludes to an “us vs. them” mentality by saying, “we need to get other countries to start paying (i.e. China) these higher tariffs in order to bring more jobs at home.”

There is only one problem with this: foreign countries don’t pay tariffs, US-based importers do. And when they do, they pass these higher expenses to consumers, meaning you and I are paying MORE for these goods. 

My current work as an Allyn International trade compliance specialist is a testament.

In my daily job, I help companies comply with federal rules and regulations on their importation of goods, the majority of it coming from China.

I review these daily shipments which includes a 7501 form, where depending on the product, its classification and country of origin, the duty (or tariff) is determined and paid to Customs and Border Protection (CBP) and the US Department of Treasury. 

I ensure companies are “in compliance” with regards to their product importation and make sure they are correctly paying the duties, fees and taxes owed to the US government.

In my line of work, I have never come across any situation where the foreign government or foreign exporter pays these tariffs.

Higher tariffs on imported goods means traditional importers such as Costco, Walmart, Target, Bed Bath and Beyond---where you and I often shop---and all other major US companies are paying these higher tariffs, and in return, are passing the costs down to the consumer.  

I have a challenge for you: Next time you can show me a receipt or 7501 form proving foreign governments or foreign companies are paying these higher duties, I’ll be happy to pay the fee for you.

I’m still waiting…