How exactly do the prices work?Posted at 7:16 pm Greenwich average time
In practical terms, a price is an internal tax taken from the goods when they enter the country, proportional to the value of importation.
Thus, a car imported into the United States with a value of $ 50,000 (£ 38,000) subject to a price of 25% would be faced with a charge of $ 12,500.
The costs are paid physically by the American company which imports the goods, not the foreign company which exports them.
The question of knowing where the burden of final “economic” prices, as opposed to the initial bill, is more complicated.
If the American import company transmits the cost of the price to the person that buys the product in the United States in the form of higher retail price, it would be the American consumer who supports the economic burden.
If the American import company absorbs the cost of the price itself and does not transmit it, then this company would support the economic burden in the form of lower profits that it would have played otherwise.
Alternatively, it is possible that foreign exporters can lower their prices wholesale by the value of the price in order to keep their American customers.
Find out more about the effect of prices on American consumers here.
