The global economy has had a turbulent start to 2025, driven in no small part by recent shifts in U.S. trade policy. Longstanding agreements are being rewritten, leaving importers and consumers alike to navigate rising uncertainty. One common misconception—often repeated by pundits—is that it’s the exporting country that pays the cost of tariffs. But history, and the reality of customs procedures, say otherwise.
In this installment of Freight Talk with Zander, we take a closer look at who really shoulders the burden—and what it means for businesses like ours, and for you.
This is not the first time we’ve walked this road. In 1930, the Smoot-Hawley Tariff Act provoked an outcry from economists who warned that tariffs would increase prices for U.S. consumers, raise the cost of living, and stifle economic growth. They were right. Nearly a century later, it’s remembered as one of the most damaging policy missteps of the 20th century.
More recently, the 2018–2019 trade conflict with China led to measurable damage: according to Moody’s Analytics, the U.S. lost roughly 300,000 jobs and 0.3% of GDP. Bloomberg Economics estimated the cost to the U.S. economy at over $300 billion by 2020. And beyond the tariffs themselves, global uncertainty triggered sharp increases in transportation costs, which only compounded the problem.
In 2025, we’re once again seeing history repeat itself.
Let’s be clear: tariffs placed on goods imported into the U.S. are paid by the importer—not the exporter. Importers are billed directly on the U.S. Customs Form 7501 at the time goods arrive. That surcharge is due before the shipment is cleared. And then importers must make difficult decisions: absorb the cost, or pass some of it on to customers through price increases.
Some companies can absorb more than others, but no business is immune. Over time, those costs ripple outward, reducing job growth, slowing economic activity, and ultimately raising prices for consumers.
The Federal Reserve’s July 2025 Beige Book confirms it:
“Prices increased across all districts… businesses reported experiencing modest to pronounced cost pressures related to tariffs.”
Even Fed Chair Jerome Powell has stated that interest rates will not come down as long as tariff uncertainty continues to weigh on the economy. Again, if foreign exporters were the ones paying, this wouldn’t be a domestic growth concern.
At Zia Pia, we take our commitment to quality, and to our customers, seriously. That’s why we’re sharing this update. Trade policy can be opaque, but the effects are very real for small businesses like ours. We’re doing everything in our power to maintain fair and competitive prices, even as external costs rise.
We’ll continue to source and deliver Italy’s most beautiful foods with the care, transparency, and integrity you’ve come to expect from us. And while we can’t always control what’s happening in Washington or at sea, we can promise this: we’ll keep you informed, and we’ll never lose sight of the relationships that matter most—ours with you.
Thank you for your trust, your loyalty, and your continued support.