When a tariff is placed on China … China doesn't pay the tariff. The buyer of the Chinese made product sold in the U.S. or EU does. If a tariff of 60% was put on all Chinese goods being imported, the buyers of those goods have a tough decision to make. How much do they raise their prices to compensate? … the full 60%, which would be a shock to their customers, or do they eat some of the margin taking a loss themselves?