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| ©iStock/Pavlo Stavnichuk |
The buyers’ tariff payment [business owner who imports], in turn, is included in the bill you pay in the store. This is because these buyers add it to the bills they’ve paid to their Vietnamese supplier and to the shipping company carrying across the Pacific to the United States. The result is the “landed cost” from which they mark up to cover costs — wages, building rent, transport, maintenance, marketing, etc. — and leave a profit margin. If the product doesn’t sell, the store takes the loss; if you buy it, you cover their tariff cost. Using the hypothetical example of a container carrying 1,000 Vietnamese-made wooden chairs valued at $100 each, here's the arithmetic.
Read on for the full analysis.
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