The main difference between a tariff imposed in a large country versus one imposed in a small country is that the tariff is the large country is:

Question

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In a large country, the domestic producers have significant market power and can increase prices to some extent after the imposition of a tariff. Therefore, some of the burden of the tariff can be shifted onto domestic consumers. At the same time, foreign producers may absorb some of the tariff in order to maintain their market share in the large country. Therefore, the burden of the tariff can also be shifted onto foreign producers. Hence, the tariff in a large country is both partially forward shifted onto domestic consumers and partially backward shifted onto foreign producers.

The Main Difference Between a Tariff Imposed in a Large