There’s widespread confusion about who actually pays tariffs—foreign companies or U.S. consumers. The reality is, tariffs often act as a tax on consumers. When tariffs are imposed, businesses typically raise prices to cover the added costs, which gets passed on to buyers. This contributes to inflation. For example, Ford announced price hikes of $2,000 on several models, and Mattel confirmed higher toy prices ahead of the holiday season. Despite claims from the Trump administration, these are clear signs that tariffs hit Americans' wallets directly.
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