Since his return to office, President Trump has set in motion a global trade war, wielding tariffs to try to achieve multiple goals at once: raising federal revenue, reducing or eliminating trade deficits with other nations and compelling manufacturers to make more of their goods in the United States.

But who actually pays those tariffs, and where does that money go?

Here’s how the process works.

What is a tariff, and who pays it?

A tariff is essentially a government surcharge on products imported from other countries.

Tariffs are paid by the companies that import the goods. The revenue from U.S. tariffs is paid by U.S. importers to the U.S. Treasury Department.

How does that work?

Here’s an example: If Walmart imports a $100 pair of shoes from Vietnam — which faces a 20 percent tariff under the terms of a preliminary trade deal — Walmart will owe $20 in tariffs to the U.S. government.