Suppose you supply a Mercedes car manufactured in Germany to the USA, costing 100,000 dollars. You are imposed a tariff of 25%. What are your alternatives? 1. You can sell the car for 125,000. Then you will pass the entire cost onto Americans, essentially the consumer will pay an additional tax to the budget. However, there is a risk that the buyer in this situation will not buy your car at all, but will buy an American car, supporting the American economy. 2. Increase the price by 12.5% (conditionally), and subtract the rest from your margin, essentially sharing this tax with the American budget with the American consumer. A compromise option, if the margin allows, but this reduces your ability to develop your production, pay profit tax, etc. 3. Build a factory in the USA and produce Mercedes cars for the American market there. In all these cases, the benefits for the American economy outweigh the drawbacks. This is the real redistribution of wealth from foreigners to the USA, not who signed the check, as a German professor thinks.