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How tariffs actually work

A tariff is a tax on imported goods. When the US puts a 25% tariff on Chinese electronics, the American importer pays that 25% to US Customs. The importer raises prices to cover the cost. The retailer passes it to you. China doesn't write a check. You do — every time you buy something.

The current tariff rates below reflect the cumulative tariffs in effect as of April 2026, including the "reciprocal" tariffs announced in 2025.

Your Monthly Tariff Tax

Enter what you typically spend per month in each category. We'll calculate the hidden tariff tax you're paying.

Your Annual Tariff Tax
$0
Enter your spending above to see your tariff impact

$0

Per Month

$0

Per Week

$0

Per Day

$0

vs. Avg Household

Where Your Tariff Tax Goes

$3,800

Average household tariff cost per year

Multiple economic analyses estimate that current tariff levels cost the average American household between $3,400 and $4,200 annually in higher prices.

$80B+

Tariff revenue collected annually

All of this money comes from American importers — companies that buy foreign goods and sell them here. They pass the cost to consumers.

145%

Max tariff rate on Chinese goods

Some categories of Chinese imports face cumulative tariff rates exceeding 100%. That $20 widget now costs $49 before the retailer even marks it up.

0

Checks received from China

Despite claims that tariffs make foreign countries "pay us," no foreign government writes tariff checks to the US. American businesses and consumers bear 100% of the cost.

Data Sources & Methodology

  • Tariff rates: US International Trade Commission Harmonized Tariff Schedule
  • Consumer impact estimates: Yale Budget Lab, Tax Foundation, Peterson Institute
  • Import penetration ratios: US Census Bureau trade data
  • Category breakdowns: Bureau of Labor Statistics Consumer Expenditure Survey

This calculator uses simplified tariff pass-through estimates. Actual impact varies by specific products purchased, retailer absorption, and supply chain adjustments. Figures are estimates for educational purposes.