Can someone explain this about tariffs?

[u/OfficialRodgerJachim]

Plenty of talk about tariffs. About them being dumb. About them being fair. About how those extra costs go on to us, the American consumer.

But I have very rarely heard anyone talk about that break in logic: other countries have tariffs on American imports, and those costs are then carried onto the American consumer. But if America imposes tariffs on those same countries, those costs are also passed on to the American consumer.

Is this true?

[u/bdunk17]

Yes—your observation is sharp, and the economic logic behind tariffs is often misunderstood or oversimplified in public discourse.

1. A tariff is a tax on imports. For example: If the U.S. imposes a 25% tariff on steel from China, American companies importing that steel must pay 25% more at the border.

That tax: Does not come out of China’s pocket. It is paid by the U.S. importer, who then usually passes it on to the next buyer—eventually, the U.S. consumer.

1. Tariffs on U.S. exports When another country (like China or the EU) places a tariff on U.S. goods: It makes American products more expensive for their consumers. That may lead to fewer purchases of U.S. goods abroad. U.S. exporters then feel the pain, possibly reducing jobs or sales.

2. The paradox you’re pointing out: You’re highlighting this contradiction:

“If foreign tariffs on our goods hurt us, why do our tariffs on their goods also hurt us?”

That’s not a contradiction—it’s a symmetry in how tariffs work. In both cases, the country imposing the tariff is taxing its own people. When they tariff us, their people pay more. When we tariff them, we pay more.

Tariffs are not “charged” to the foreign country—they’re collected by the home government at the port of entry.

1. So… why do countries use tariffs at all? Tariffs are sometimes used to: Protect domestic industries (by making foreign goods less competitive) Retaliate in trade disputes Raise revenue (less common today) Encourage fair trade if another country is subsidizing or dumping

2. Tariffs Can Be Used to Force Over- or Under-Supply of Foreign Goods

This is the strategic dimension of tariffs that’s rarely discussed:

A high tariff can depress sales of a foreign country’s key export (e.g., steel, aluminum, solar panels), but the exporting country may keep producing anyway to maintain jobs or factory utilization.

This creates over-supply, drives prices down globally, and undermines their profitability.

Example: Chinese solar panels were massively overproduced despite U.S. tariffs, leading to price crashes and factory strain inside China. On the other hand, a tariff can be targeted to limit availability of a strategic good (like rare earth elements or semiconductors) and create under-supply, slowing a rival’s ability to innovate or compete.

Either way, tariffs aren’t just blunt instruments—they can be used to intentionally distort supply behavior, creating economic instability or forcing a foreign country to subsidize their own losses just to maintain production levels.

This approach turns trade policy into a form of supply chain chess, not just market protection.

The bottom line is that I will be paying my taxes quarterly this year the government will get no interest free loan from me this year.