How Tariffs Work

A tariff is a tax on imported goods that moves through customs paperwork, importer costs, retail prices, and trade leverage.

1. Frame 1At the port, a tariff is a tax on imported goods, adding a cost before a shipment moves onward.
2. Frame 2The HTS classifies nearly every item; product details and country treatment shape the duty rate.
3. Frame 3A carmaker importing engines pays the duty first; the cost can raise production and consumer prices.
4. Frame 4Across supply chains, each border crossing can add another tariff cost for U.S. businesses and consumers.
5. Frame 5The system can fail when classification details are wrong; CBP, not the importer, decides the rate.
6. Frame 6Watch the next HTS rate, duty-free treatment, binding ruling, exemption request, or price change.