Harris Trump debate: What is a tariff and who pays them?
The first debate between Kamala Harris and Donald Trump is set for Tuesday night at the Constitution Center in Philadelphia. As the two face off for a 90-minute exchange on policies and initiatives, one of the topics likely to come up is tariffs.
In the only meeting between Trump and President Joe Biden before he pulled out of the race, tariffs came up early in the debate.
Harris has said Trump-imposed tariffs could cost Americans thousands of dollars a year. Trump last month pitched 20 percent tariffs to punish foreign countries for “ripping us off.”
But what are tariffs?
What are tariffs and who pays them?
Simply put, tariffs are taxes on merchandise shipped to the U.S. from other countries.
The point is to make things like cars, electronics, clothes and many more products more expensive for overseas manufacturers to ship here so that American-made products are more competitive.
The tariffs are paid by the importers, but those costs are typically spread out and applied to the cost of each product, making them more expensive for people.
Tariffs figure to be a talking point at the debate Tuesday night between Vice President Kamala Harris and former President Donald Trump.
Trump has long advocated for tariffs, particularly during his presidency, arguing that they protect American jobs by cutting our reliance on foreign products, particularly from China.
Harris, however, is more cautious about tariffs, focusing instead on the impact they have on everyday consumers who will need to pay more for the things they use. She also argues that tariffs can lead to trade wars where other countries impose tariffs on the products we ship to them.
Are tariffs taxes?
Tariffs are not like income or sales taxes. Instead, they are levies — additional fees — placed on products brought into the country by importers.
Those importers, often U.S.-based companies, pay the tariff and typically pass the expense down the line to the consumer through higher prices.
While tariffs are technically considered taxes — since they are fees imposed by the government — the debate over who really pays them can influence how people view them.
Some think the foreign companies that make the goods pay the tariffs, but the fees are paid by the importers who bring the products into the country.
So even though it doesn’t feel like a direct tax because it’s not added on to an individual purchase, buyers are the ones covering the extra cost in the price of the item.
This article originally appeared on Cherry Hill Courier-Post: Trump, Harris could debate tariffs; what are they and who pays them?