Who Pays the Tariffs?

Hey everyone, Ben here.

The effects of tariffs can seem very abstract and far away. Maybe you read about them in the news but don’t hang out with too many import merchants in your free time. For most of us it’s hard to clearly see their impact on our lives.

At Otherlands Beer we buy our brewing malt directly from a small maltster we adore in Bamberg, Germany. We truly believe that their malt is a fundamental source of the character of our beer and have spent years building a relationship with them. Last year the Trump administration applied tariffs to most products imported from the European Union (as well as the rest of the world.) We Americans were told that the tariffs would help American businesses, that “other countries” would pay the tariffs, not us.

The invoice pictured here shows you the tariffs and who pays them. The “Duty Deposit” circled in red represents the 15% tariff. We paid it. Otherlands Beer in Bellingham, WA. Not the EU, not the government of Germany, not our friends in Bamberg. This American small business.

Yesterday, the tariff rate on many European countries was increased an additional 10%. There are threats of another 25%. While all of this is intended to bully and coerce our European friends, sadly, American small businesses will keep paying these tariffs. And whether we realize it or not, we all will.

— Ben