It’s hardly surprising that the Trump administration would prefer that consumers not know how much tariffs are costing them; the president has long insisted that the cost will be borne by foreign countries. But historically tariffs are at least partially paid by consumers.
And taxes have long been listed separately in America (unlike in Europe, where the value-added tax is automatically added to the sticker price). Listing a tariff tax alongside a sales tax would be more consistent with how pricing usually works and is better for consumers.
DO CUSTOMERS WANT TO BE MORE OR LESS INFORMED?
I am a fan of pricing transparency, even though most people hate it.
Europeans who shop in the US often complain that the price they end up paying at the register is higher, due to taxes, than the one they see on the tag. Americans don’t like seeing extra charges, either, which is one reason former President Joe Biden tried to end the practice by eliminating so-called junk fees for things like concert tickets and hotel rooms.
One of the main arguments against this practice is that it makes customers feel like they are being cheated. No one likes having to pay a baggage fee to an airline, for example.
But the deeper argument is that these “fees” are an illusion: Without them, people would still pay the extra US$30 or US$50, it would just be in the cost of the ticket. Airline customers would still be annoyed at the higher price, but they would be less informed.
Source: CNA
