Does Trump think it's the source country that pays tariffs?

[Caliman73]

25. You are right

I think that most people here understand the purpose of tariffs and that in some cases it is something that is supported as a sensible trade policy. Like you said however, and like people are arguing, Trump is proposing that Mexico will eat the 20% additional charge and thus pay for the wall by simply complying with the duty fees. Those costs are rarely eaten by the producer in any meaningful way, but are passed on to the consumer. Either that, or as you say, it will boost domestic production for a bit to fill in the losses, but at the higher domestic prices. Mexico will look for new trade partners and as others said, would likely raise duties on US imports as well. Overall it would be a loss of revenue.