How Much Do Tariffs Raise Prices?

“President Trump has imposed or threatened tariffs on a range of products and countries. How much more will consumers pay? The question is surprisingly hard to answer,” the Wall Street Journal reports.

“For example, a 10% tariff on shoes from China would raise their sticker price 4% or so, but on wine or olive oil from Italy, almost 10%.”

“Why the difference? Tariffs aren’t the only factor at work. Currency changes, the availability of alternatives, and the pricing strategies of producers and importers all play a part. All of this affects ‘pass-through’—how much of a tariff reaches the consumer.”