“The Consumer Pays the Tariff—Every Time” (part 2)

It’s important to keep in mind one key truth about tariffs: they make things more expensive. That’s not a side effect or an unintended consequence—it’s actually the point. Tariffs are built to increase the price of imported goods. If they didn’t raise prices, they wouldn’t do much of anything.

That price increase serves two purposes. First, it brings in revenue for the U.S. government—billions of dollars, depending on how broad the tariff is. Second, it’s supposed to influence behavior. When the cost of an imported product rises, the idea is that consumers will think twice, companies might change suppliers, and eventually, the country we’re targeting might feel some economic pressure.

But none of that works unless the price goes up.

If a product’s price stays the same, then the importer is somehow absorbing the cost—and that’s rare. And if no extra money is being collected, then the government isn’t actually gaining anything. So in most cases, the mechanism only works if the end cost—the shelf price—goes up for American consumers.

That’s how the tariff becomes real. That’s how it gets paid. It shows up in everyday life, quietly tucked into the new price of a product you’ve bought a dozen times before. The product itself doesn’t change—but now it’s just… more.

Sometimes, foreign exporters will lower their prices to keep a foothold in the U.S. market and soften the blow of a new tariff. That can happen, especially in competitive sectors like basic manufacturing or agriculture. But it’s not common, and when it does happen, the savings are usually short-term and minimal. Most businesses—foreign or domestic—can’t eat the cost of a tariff forever. So sooner or later, it’s the American customer who picks it up.

And this doesn’t just apply to foreign-made goods. A lot of American-made products rely on foreign components—materials, parts, packaging, or raw goods that are brought in from abroad. So even when you’re buying something labeled “Made in the USA,” you might still be paying more because a piece of it was subject to a tariff somewhere along the line.

For example, a U.S.-built appliance might include steel from Canada or microchips from Taiwan. If those parts now cost more due to a tariff, then the appliance itself will follow. That cost stacks up through the supply chain, and most of the time, it gets passed along to the final sale.

This is especially true in industries where prices are already tight and margins are thin. In categories like electronics, clothing, tools, and household goods, even small shifts in cost ripple fast. And while big companies may delay price hikes temporarily, especially if they’re sitting on pre-tariff inventory, those buffers don’t last.

So when people say tariffs only hurt foreign countries—or that they don’t affect everyday Americans—I think they’re skipping the middle steps. The government doesn’t pay the tariff. The foreign government doesn’t pay the tariff. The company might absorb a little. But eventually, you pay the tariff.

Whether it’s at the hardware store, the grocery aisle, or the back-to-school sale, that increase lands on your receipt. And in the case of broad, sweeping tariffs, it can feel like death by a thousand cuts.

Again, I’m not here to say tariffs are always bad. They’re a policy tool. But if we’re going to use that tool, we should be honest about where the cost lands. Not in Washington. Not in Beijing. Not in theory.

Right here. In the cart.