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Curtis's avatar

One thing to note is that the tariff percentages are not on the retail cost that the consumer sees. Tariffs are on the cost that the company pays to have it made, often referred to as the FOB (freight on board) cost. For instance, if a pair of running shoes from Vietnam retails at $140, we would not see a 47% increase on the retail price. But the shoe company will now have to pay a 47% tariff on their FOB cost for the shoe. So if they have it made for $28, they will now be paying a little over $41 to import the shoe.

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