How US Tariffs Work — and Who Foots the Bill: QuickTake

US President Donald Trump has rattled economies and markets with his promise of imposing punitive tariffs on the nation’s largest trade partners. So far he’s implemented 10% levies on China; delayed plans to hit Mexico and Canada with a 25% duty tax; and indicated that he’s coming for the European Union next. Yet beyond all that noise, tariffs have on-the-ground implications. Here’s how they work — from who actually pays to how the revenue is collected.

What are tariffs and what purpose do they serve?

Tariffs are taxes imposed on imported goods. Like all taxes, they are a source of ...