this post was submitted on 06 Apr 2025
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Explain Like I'm Five

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What exactly are tariffs and how do they work? (lazysoci.al)
submitted 1 month ago by CheeseToastie@lazysoci.al to c/explainlikeimfive@lemmy.world
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I have 0 maths or economy skills, so I do need it explained like I'm 5. They're in the news a lot atm but I just don't understand them

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[โ€“] bjoern_tantau@swg-empire.de -2 points 1 month ago (1 children)

A tariff is the price a foreign company has to pay to be allowed to sell their product in America. When the product normally costs $100 and the tariff is 20% then the company has to pay $20 to be allowed to sell their product. Those $20 go to the American government.

[โ€“] helvetpuli@sopuli.xyz 4 points 1 month ago

The importer pays it, not the foreign company.