As Is the Case With All Taxes, Tariffs Raise Prices

Following Trump’s “Liberation Day” announcement on tariff increases, there was an immediate claim that tariffs would increase prices on imported goods.  The reason this claim was made is because it is correct.  It does not take an economics degree to realize that if a pair of shoes with an import price of $50 from China has a 100% tariff imposed, then the cost to the US retailer increases to $100 which will in turn cause them to raise their price.  This is easy to see and understand in several other tax types as well.  Gasoline taxes obviously increase the price of gasoline, cigarette taxes increase the price of cigarettes, and sales taxes increase the price of everything they touch.