In real world business, it?s a subject of negotiation as to whether the producer (exporter) or consumer (importer) pays tariffs. One of the
Incoterms is negotiated into a business agreement to define this issue. Usually, when the consumer is the importer, then he pays the import tariffs to bring the goods into his own country.
If the foreign exporter's (producer's) method is to supply stock to distributors in the destination country, then the foreign producer often pays the tariffs to the Customs authority in the country of destination and other costs (freight, brokerage, other fees) all the way to the distributor's locations where the stock will be kept for subsequent sale. So Porsche probably pays tariffs to US Customs to get its cars into the US dealer network, but that cost then is added to the price you pay for your car. (and worth every penny, lol)
Either way it's handled, tariff costs get added into the selling price
100% paid by the ultimate customer (consumer).
So that's the "real world" way it's handled.
For your microeconomics class you'd say the consumer pays.
So countries can raise tariffs to discourage their citizens from buying from foreign producers, in order to encourage those purchases to be made from domestic producers instead. That happens when some country's current administration gets persuaded by lobbyists to protect some industry.
Or it's also handled the opposite way around. For example, the USA gives foreign aid to Caribbean nations by granting unusually low tariffs to shipments from producers there (Caribbean Basin Economic Recovery Act (CBERA)). As a result, companies from Japan, other places, opened plants in the Caribbean to get low tariffs into the USA market, creating jobs and tax revenues for the Caribbean nations. PRetty nice of us, huh?
The USA also gave/gives similar special low tariffs to shipments from producers in Andes (South America), Israel, others, listed below.
For some source material you can cite,
This is the official US Tariff info source.
For something specific you can use, suggest you go to
this web page and you can see specific tariff machinations in action, like
General Note 7 Products of Countries Designated as Beneficiary Developing Countries for Purposes of the Caribbean Basin Economic Recovery Act (CBERA)
General Note 8 United States-Israel Free Trade Area Implementation Act of 1985
General Note 10 Products of the Freely Associated States
General Note 11 Products of Countries Designated as Beneficiary Countries for Purposes of the Andean Trade Preference Act (ATPA)
etc. etc. More examples cited below:
Programs under which special tariff treatment may be provided are:
Generalized System of Preferences
United States-Australia Free Trade Agreement
Automotive Products Trade Act
United States-Bahrain Free Trade Agreement Implementation Act
Agreement on Trade in Civil Aircraft
North American Free Trade Agreement:
Goods of Canada
Goods of Mexico
United States-Chile Free Trade Agreement
African Growth and Opportunity Act
Caribbean Basin Economic Recovery Act
United States-Israel Free Trade Area
Andean Trade Preference Act or
Andean Trade Promotion and Drug Eradication Act
United States-Jordan Free Trade Area Implementation Act
Agreement on Trade in Pharmaceutical Products
Dominican Republic-Central America-United States Free Trade Agreement Implementation Act
Uruguay Round Concessions on Intermediate Chemicals for Dyes
United States-Caribbean Basin Trade Partnership Act
United States-Morocco Free Trade Agreement Implementation Act
United States-Singapore Free Trade Agreement
If you want to contrast with the eu regime. you
could look around in here.
Good luck with your paper. I'd be interested to read it, if you'll share. Also, suggest you go to your profile here and enable PM's. I'd send you a private message but can't until you enable that feature.
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