Who Actually Pays the Tariff?
There is a persistent myth that tariffs are paid by foreign exporters. In reality, the importer of record — a US company — pays the tariff when goods clear US Customs. That cost is then almost always passed downstream to distributors, retailers, and ultimately consumers.
Economists call this "tariff incidence." Studies from the Federal Reserve Bank of New York and the National Bureau of Economic Research consistently found that the 2018–2019 Section 301 tariffs on Chinese goods were passed through to US retail prices at nearly a 1:1 ratio — meaning consumers absorbed essentially 100% of the cost.
The $831-Per-Household Estimate
A widely cited 2019 analysis by economists Amiti, Redding, and Weinstein estimated that US households paid an additional $831 per year on average due to tariffs imposed during the first wave of the US-China trade war. Lower-income households were hit proportionally harder because they spend a larger share of income on goods (vs. services).
That estimate covers direct price increases on imported goods and indirect increases on domestically produced goods that compete with imports (domestic producers can raise prices when import competition is reduced by tariffs).
Which Categories Are Hit Hardest?
Not all products are tariffed equally. The categories with the largest tariff-driven price increases include:
- Steel and aluminum — Section 232 tariffs of 25% on steel and 10% on aluminum raised prices for anything made from these metals: appliances, cars, canned food, construction materials.
- Consumer electronics — Laptops, smartphones, and networking equipment faced 7.5–25% tariffs under Section 301 List 3 and List 4A.
- Clothing and footwear — These categories already had high baseline MFN rates (some shoes face duties of 20–37.5%) and additional Section 301 rates pushed costs higher.
- Home appliances — Washing machines had a dedicated safeguard tariff (up to 50% on large residential washers in 2018) that directly raised retail prices.
- Solar panels — Section 201 safeguard tariffs starting at 30% affected solar module prices, slowing residential solar adoption.
Supply Chain Complexity and Trade Diversion
Tariffs on China pushed some production to Vietnam, Bangladesh, Mexico, and other countries. This "trade diversion" partially offset costs for importers who were able to source elsewhere. However, re-tooling supply chains takes years and carries its own costs (new tooling, quality control, logistics infrastructure).
The result: price increases were not uniform. Products with flexible supply chains (garments, electronics assembly) saw smaller price impacts over time. Products with geographically concentrated production (rare earth-dependent electronics, specialized industrial parts) saw larger sustained increases.
How to Check If Your Product Is Tariffed
Every product imported into the US is classified under a 10-digit Harmonized Tariff Schedule (HTS) code. The applicable duty rate — including any Section 301 or Section 232 additional duties — is listed in the HTS schedule.
- Use our TariffPeek search to find your product's HTS code and current duty rate.
- Check column 1 (General/MFN rate) for the standard duty.
- Look for "Additional duties" or "Chapter 99" references for Section 301 tariffs on Chinese-origin goods.
- The total duty = base MFN rate + any additional Section 301 rate.
For a $500 product from China with a 15% MFN rate and 25% Section 301 rate, total duties are 40% — meaning $200 in duties on that single shipment.
Conclusion
Tariffs are a tax on imports paid by US businesses and consumers. Understanding which products carry the heaviest tariff burdens helps businesses make informed sourcing decisions and helps consumers understand why certain goods cost more than they used to. Use TariffPeek to look up current rates before making sourcing or purchasing decisions.