Not totally sure how tariffs work, who pays for them and how they’re collected? Look no further. In today’s episode, Kai and Nova answer these questions and more. We’ll explain how tariffs are applied and what they’re based on, as well as what happens when a good crosses a border multiple times. Plus, what’s the point of a country retaliating with tariffs if its citizens have to pay for them? We’ll get into it.

Here’s everything we talked about today: 

• “Who Pays for Tariffs? Here’s What You Need to Know.” by The New York Times

• “China’s retaliatory tariffs on agricultural goods will squeeze farmers” from Marketplace 

• Listen: Audio snippet on deals exporters and importers make to determine who will pay in the event of unexpected tariffs via OtterAi

• “How Tariffs Work” from The New York Times

• “Automakers warn that Trump tariffs will hike vehicle prices as much as 25%” from Reuters

• “Buying a Car? Trump’s Tariffs Could Make It More Expensive.” by The New York Times

• “Europe Delays Tariffs on U.S. Whiskey to Make Time to Negotiate” by The New York Times

• “Trump’s 200% tariff threat would be ‘a real disaster’ for Europe’s wine industry” by AP News

Join us tomorrow for “Economics on Tap.” The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern.