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Diagram explaining the steps of how import tariffs works. Each step reads: 1 - Importer company purchases item to a foreign company 2 - Foreign company sends item in exchange for the money 3 - Item is retained in a customs warehouse and tariff invoice is send to importer company 4 - Importer company send money to customs agency to pay the tariff 5 - Customs receive tariff money from importer and release the item 6 - The importer receives the item, adds the cost of the tariff to the price to avoid losing money and also adds a sales margin because a company needs to make money. 7 - You purchase the item. The price includes item cost, importer benefit margins, and the tariff cost. Importer just passed tariff upon you. The last image on the chart is a person holding a package and saying "I love losing money"