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Grocery Coupon Guide
Grocery Coupon Guide
Shay Huntley

How Tariffs on Imported Food Could Send Prices Through the Ceiling

A tariff is essentially a tax imposed by a domestic government on imported goods. This tax is not paid by the foreign exporter selling the product. It is paid by the domestic importer who brings the goods into the country. This immediately increases the importer’s operating costs. Because tariffs raise the cost of imported inputs, they contribute to higher prices at the grocery store. This system ensures the price increase is transferred directly to the consumer.

Image source: shutterstock.com

The Direct Cost Transfer

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