Who pays US import tariffs?

The importer of record — the U.S. party named on the CBP entry summary, or their customs broker — remits all import duties and fees. The foreign exporter never owes U.S. Customs directly. Who ultimately bears the cost depends on the sales contract: under DDP the exporter has to absorb it in the price, under FOB/DAP the importer pays it at entry.

Does the exporter pay tariffs?

Not to Customs. U.S. tariffs are collected from the importer of record at entry. Exporters still feel tariffs commercially: DDP sellers must forecast duty into their prices, and importers hit with higher stacks typically push for lower ex-works prices, so suppliers in competitive categories often give back margin voluntarily.

Is a U.S. tariff on the import or the export?

Always on the import. Tariffs are charged when goods enter the United States, computed on the customs value at entry. The U.S. does not tax exports at all, and no U.S. duty is billed to a foreign seller's bank account.

Who is responsible for paying tariffs under DDP?

Under DDP (Delivered Duty Paid) the seller is responsible for arranging U.S. customs clearance and paying duties, taxes and fees — that is the defining feature of the term. Sellers quote DDP by estimating the full stack (MFN + Section 301 + fees) in advance, so DDP prices rise whenever tariff policy changes.

Are import tariffs tax deductible?

Tariffs are not a standalone deduction on the tax return; for a business they become part of the cost of the inventory — capitalized into COGS as the goods are sold, like the purchase price and freight. Accounting treatment has nuances (assists, refunds, exclusions), so confirm your specific case with a tax advisor.

Who Actually Pays Tariffs — Importer or Exporter?

Updated 2026-09-19Invoice × Tariff editorial

U.S. tariffs are paid to CBP by the importer of record — the U.S. buyer or their broker, never the foreign exporter. Who economically bears the cost is a separate question: under DDP the seller prices the tariff in, under DAP/FOB it lands on the importer, and in practice both sides share it through price negotiation.

Who remits the duty to CBP: the importer of record

Legally, the answer is unambiguous. Import duties, the Section 301 and 232 surcharges, and the MPF/HMF user fees are all owed by the importer of record (IOR) — the party named on the entry summary (CBP Form 7501) who files or files-through the customs entry. For most small e-commerce and wholesale shipments that is the U.S. consignee: the American buyer, or their customs broker acting under a power of attorney.

The exporting side has no obligation to CBP. A factory in China, Vietnam or Germany cannot pay U.S. import duty directly, and no U.S. tariff line is billed to a foreign bank account. If a foreign supplier ever "pays the tariff", it does so voluntarily and reimburses the U.S. importer — a commercial favor, not a legal channel.

So: a U.S. tariff is a tax on imports, collected from the importer at entry. The export side of the transaction is untaxed.

Who bears the cost: it depends on the Incoterm

Who ends up economically paying is a matter of contract, not customs law. Incoterms decide which side arranges transport and clears export; the common commercial patterns for tariff-heavy lanes look like this:

Term	Who books freight	Who clears U.S. customs	Who pays the duty bill
EXW	Buyer	Buyer (or broker)	Buyer
FOB / CIF	Seller, to the U.S. port	Buyer (or broker)	Buyer
DAP	Seller	Buyer (or broker)	Buyer
DDP	Seller	Seller's U.S. broker/agent	Seller

Two practical consequences follow from that table:

Under FOB/DAP, the tariff arrives after the price is fixed. The buyer agreed to a price before knowing the duty stack, so any tariff change between order and entry eats the buyer's margin. This is why U.S. importers re-run landed cost per purchase order — a rate that was right in June can be wrong by the time the container lands. The Tariff Radar tracks the change dates; the tariff calculator prices a specific entry date.
Under DDP, the seller wears the tariff. Chinese-origin goods under DDP have become dramatically more expensive to quote since the stacking of the China Section 301 lists and the July 24 global Section 301 tier (see the Section 301 guide). Sellers quote DDP by estimating the full stack up front — and when the stack jumps mid-contract, the seller absorbs the surprise.

The exporter's exposure

Exporters are not off the hook; they just meet the tariff in negotiation instead of at the border:

DDP quotes must forecast duty. A supplier selling DDP builds MFN + 301 + fees into the price. When tariffs rise, DDP quotes rise faster than FOB quotes, because the seller adds a safety buffer.
Tariff-driven price pressure flows upstream. When U.S. buyers see their landed cost jump, the standard move is to demand a lower ex-works price. Independent studies of the 2018–2019 China tariffs found most of the cost stayed with U.S. importers and consumers, but suppliers in competitive categories did give back margin — so "the exporter pays nothing" is true at the border and false at the negotiation table.
Origin is the exporter's paperwork problem, too. Duty rates follow country of origin. If the exporter's documentation of where goods were made is sloppy, the importer pays the price in CBP scrutiny — and transshipment to dodge the China lists is an enforcement priority, not a loophole (see the Tariff Radar enforcement log).

Worked example: same goods, two contracts

One shipment of Chinese-origin cotton hoodies (HTS 6110.20.20), $10,000 customs value, formal ocean entry — the duty stack is identical no matter what the contract says:

HTS 6110.20.20 · origin CN · $10,000.00 · ocean formal entry · 1,000 units	Rate	Amount
Base duty (MFN) HTS Column 1 general rate · source	16.5%	$1,650.00
China Section 301 (List 4A) Trade Act 1974 §301 (USTR action, 9903.88.15 series) · source	7.5%	$750.00
Global Section 301 (CN, 12.5% tier) Trade Act 1974 §301 (global forced-labor program; FR 2026-15181 §1(a)(iii)) · source	12.5%	$1,250.00
Harbor Maintenance Fee (HMF) fee, not a duty · charged on the same value	0.125%	$12.50
Merchandise Processing Fee (MPF) fee, not a duty · charged on the same value	0.3464% (once per entry, min $33.58 / max $651.50)	$34.64
Total duties + fees owed to CBP		$3,697.14
Effective tariff rate (duties + fees ÷ customs value)		36.97%
Duties + fees per unit		$3.70

Computed live from ruleset v0.3.1 (data as of 2026-09-19, entry date 2026-09-19). Each row's verification status is shown on the HTS 6110.20.20 page; estimates only, not customs advice.

What changes with the Incoterm is who writes each check:

FOB Shanghai: the U.S. buyer pays the carrier, the broker, the ~17%+ duty layers above, and the MPF/HMF fees. The exporter's invoice is $10,000 and done.
DDP Denver: the exporter (through a U.S. broker) pays all of it and recovers it inside its selling price. Same numbers, opposite pockets.

That is the whole answer in miniature: the tariff bill is always addressed to the import side; the contract decides which side's wallet it comes out of.

How importers keep the burden down (legally)

Classify correctly before you optimize anything. A wrong code makes every other number wrong — start from the HTS lookup and the product pages such as /hts/61102020.
Check exclusions and exemptions. The current China exclusion round runs through November 10, 2026, and USMCA-qualifying goods skip the global 301 tier — both are worth real money.
Price the entry date, not today's date. Pending and expired layers are priced correctly in the calculator, and full catalogs can be run through the batch calculator.
Consider DAP over DDP for volatile lanes if you are the importer — and a duty estimate line inside every DDP quote if you are the exporter.

Frequently asked questions

Who pays US import tariffs?: The importer of record — the U.S. party named on the CBP entry summary, or their customs broker — remits all import duties and fees. The foreign exporter never owes U.S. Customs directly. Who ultimately bears the cost depends on the sales contract: under DDP the exporter has to absorb it in the price, under FOB/DAP the importer pays it at entry.
Does the exporter pay tariffs?: Not to Customs. U.S. tariffs are collected from the importer of record at entry. Exporters still feel tariffs commercially: DDP sellers must forecast duty into their prices, and importers hit with higher stacks typically push for lower ex-works prices, so suppliers in competitive categories often give back margin voluntarily.
Is a U.S. tariff on the import or the export?: Always on the import. Tariffs are charged when goods enter the United States, computed on the customs value at entry. The U.S. does not tax exports at all, and no U.S. duty is billed to a foreign seller's bank account.
Who is responsible for paying tariffs under DDP?: Under DDP (Delivered Duty Paid) the seller is responsible for arranging U.S. customs clearance and paying duties, taxes and fees — that is the defining feature of the term. Sellers quote DDP by estimating the full stack (MFN + Section 301 + fees) in advance, so DDP prices rise whenever tariff policy changes.
Are import tariffs tax deductible?: Tariffs are not a standalone deduction on the tax return; for a business they become part of the cost of the inventory — capitalized into COGS as the goods are sold, like the purchase price and freight. Accounting treatment has nuances (assists, refunds, exclusions), so confirm your specific case with a tax advisor.

Price your side of the deal

Run the exact stack for your HTS code, origin and entry date, then issue a DDP-ready invoice with the [invoice generator](/invoice) — or hand the FOB buyer the numbers before they ask.

Estimates only — not customs, tax or legal advice. Duty is finally determined by U.S. Customs and Border Protection at entry. See the disclaimer.