First, let's start with a definition. Tariffs are a tax on imports or exports between sovereign states. Who Pays the Tax? We all do? The importer (US Company) pays the tax on items coming into the Country, and then charges the distributor more to sell the product to the end user. Ultimately, the end user will pay the highest price since the final retail price will reflect all the charges. The general idea behind tariffs is to encourage people to "buy local" or "buy American",