On August 11, I sent Pennsylvania Senator Dave McCormick a second letter asking about the administration's tariffs.
My first was back on April 7 and I got a response dated April 11.
My most recent letter had but one question in it:
So Senator let me ask you a simple question: In the end, who pays the tariffs? [emphasis in original.]
After spending three rather hefty paragraphs outlining the recent history of those tariffs, the Senator gives me something of an answer:
I support the President’s desire to shake up U.S. trade policy. For too long, the United States has provided low trade barriers to foreign trading partners without receiving reciprocity in return.
And so on. It's not an answer to the question I asked, of course. But at least it was an update on the near-response I got on April 11.
For example, in that letter in a paragraph that starts "I support President Trump's..." McCormick writes:
I support President Trump’s goal of restoring fairness and reciprocity to our trade relationships and bringing countries to the table to negotiate a better deal for American businesses and workers. To accomplish that goal, I believe we must be very specific about the bad behavior from other countries that is unfair and that we would like to see changed.
Here, the updated letter reads:
I support the President’s desire to shake up U.S. trade policy. For too long, the United States has provided low trade barriers to foreign trading partners without receiving reciprocity in return. Decades of misguided trade policies have devastated domestic manufacturing in Pennsylvania and across the country. Countries like China have exploited the openness of U.S. markets through steep deficits, state subsidies, intellectual property theft, forced technology transfers, and currency manipulation. Tariffs are a legitimate and necessary tool to hold these practices accountable and secure our domestic supply chains. When used strategically, tariffs can help level the playing field for American workers and businesses. During his first term, President Trump employed tariffs effectively to bring negotiators to the table and secure better deals for the United States.
We are already seeing results from the reciprocal tariffs. Major deals have been reached with the European Union—which includes a 15% tariff alongside $750 billion in U.S. energy purchases and $600 billion in U.S. investment—Japan, with a $550 billion investment commitment, and South Korea, which agreed to a $350 billion investment and a shipbuilding partnership. These deals demonstrate how targeted pressure can yield meaningful benefits for American workers and businesses. While some short-term economic disruptions will have to occur, I believe these actions are already producing long-term gains for Pennsylvania and the nation. In total, the negotiated deals represent over $2 trillion in foreign investment commitments to the United States.
But no answer to who's paying for all the tariffs.
Who pays the tariffs, Senator?
The BBC has a take on the trade deal with the EU. It says that while Trump himself is a "winner" for securing a trade deal with the UE, the losers are US Consumers:
Ordinary Americans are already aggrieved at the increased cost of living and this deal could add to the burden by hiking prices on EU goods.
While not as steep as it could have been, the hurdle represented by a 15% tariff rate is still significant, and it is far more pronounced than the obstacles that existed before Trump returned to office.
Tariffs are taxes charged on goods bought from other countries. Typically, they are a percentage of a product's value. So, a 15% tariff means that a $100 product imported to the US from the EU will have a $15 dollar tax added on top - taking the total cost to the importer to $115.
Companies who bring foreign goods into the US have to pay the tax to the government, and they often pass some or all of the extra cost on to customers. [Emphasis added.]
For good measure, the BBC also notes that US Energy corporations is also a "winner" due to increased European investments:
Trump said the EU will purchase $750bn (£558bn, €638bn) in US energy, in addition to increasing overall investment in the US by $600bn.
Which is something entirely different from the issue of tariffs of course. Senator McCormick dutifully included it in his letter while not answering my question as to who pays the tariffs.
US Consumers pay the tariffs.
So good to know the US Energy corporations got a boost from the Trump Administration (with Senator Dave McCormick's support) with the same deal that will effectively tax US consumers.
Thanks, Dave. You're a pal.
The letter:
