{"id":13856,"date":"2025-07-30T14:43:39","date_gmt":"2025-07-30T14:43:39","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13856"},"modified":"2025-07-30T14:43:40","modified_gmt":"2025-07-30T14:43:40","slug":"the-impacts-of-tariffs-on-companies-and-consumers","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/the-impacts-of-tariffs-on-companies-and-consumers\/","title":{"rendered":"The Impacts of Tariffs on Companies and Consumers"},"content":{"rendered":"\n

Leonard M. from New Orleans, LA asks: <\/em>Hey Mitch, I\u2019m in the camp of not liking tariffs. I view them as tax hikes that U.S. companies end up paying and\/or that everyone in America will end up paying somehow, someway. With some of the tariffs in place and it seeming like they\u2019re here to stay, have you seen any data on how the added costs are being passed through? What\u2019s your general take here? Thank you.<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, Leonard. I take your point about not being a fan of tariffs. I think that in many cases, tariffs are counterproductive to growth and innovation, which are two outcomes we should all want in a healthy economy. I would not go so far as to say tariffs choke off growth and innovation completely, but I\u2019d make the argument that they don\u2019t help.<\/p>\n\n\n\n

The framing of your question is an important one: tariffs may appear as though <\/em>they\u2019re paid by foreign exporters, but in practice, the bill often ends up on the doorstep of U.S. businesses and consumers.<\/p>\n\n\n\n

When a tariff is imposed, it\u2019s the importer\u2014<\/em>often a U.S. manufacturer, wholesaler, or retailer\u2014that pays the duty when goods arrive at a U.S. port. That\u2019s the first sign that domestic firms are on the hook. The bigger question is whether they pass those costs along, absorb them into their margins, or look to suppliers for price relief.1<\/sup><\/p>\n\n\n\n

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