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How a Tariff Works In the United States American-made cloth costs $4.00 a roll. In Britain A 25% tariff of $1.00 is added to the price. British-made cloth costs $4.00 a roll. British-made cloth costs $5.00 a roll in the United States. I'm gonna get into the weeds here, but you guys asked, so... Several of my customers have asked me lately what happens if the government institutes new tariffs on imports, so I thought I would do a quick explainer here, just so you know how that might affect our shop and your stash! For example, I buy silk from a US company that imports from their mills in either India or China. That's where silk comes from. We don't make silk fabric here in the USA. (In fact, we hardly make ANY fabric in the US since the 1980s when the first free- trade agreements were signed during the Reagan administration.)