Donald Trump’s tariffs, explained

Tariffs are taxes imposed by governments on goods and services imported from abroad, and they have been imposed by US President Donald Trump on various countries, including China, Canada, and Mexico.
The tariffs imposed by Trump include a 10% tax on all products from China, which was announced in February, and an additional 10% tariff announced this week.
Canada and Mexico are also subject to tariffs, with a 25% tax on goods such as lumber and tomatoes, effective March 4th.
Tariffs can have significant effects on consumers, including higher prices for imported goods, reduced competition, and potential job losses in industries that rely heavily on imports.
There is a deep misunderstanding of how tariffs work, partly due to Trump’s false claims about their impact, which can lead to confusion among the public and policymakers alike.

If you live in the US, congratulations – you are now a foot soldier in what has been called “the dumbest trade war in history.” And if you live in one of the top three countries that trade most with the US (Canada, Mexico, and China), apologies: you are part of this as well.

Donald Trump loves tariffs despite regularly misrepresenting how they work, and after months of saying he would impose them on goods coming into the US, he made good on his promise this week: there is a 10 percent tax on all products from China imposed as of February, plus an extra 10 percent announced this week. After pausing tariffs on Canadian and Mexican goods last month, those also apply as of March 4th – a whopping 25 percent on our neighbors that will affect everything from lumber to tomatoes.

There’s a deep misunderstanding of tariffs, in part thanks to Trump’s false claims. Who pays tariffs? What do they actually do? How do they affect consumers? Let’s talk about it.

What’s a tariff, exactly?

Leave the word “tariff” aside for a second and think about it like this: it’s a tax. Specifically, tariffs are a tax set by the government on goods and services that come from abroad. They can be wide reachin …

Read the full story at The Verge.

link

Q. What is a tariff?

A. A tariff is a tax set by the government on goods and services that come from abroad.

Q. Who pays tariffs?

A. The person or business importing the goods from another country typically pays the tariff.

Q. How do tariffs work?

A. Tariffs are imposed as a percentage of the value of the imported goods, and they can be used to raise revenue for the government.

Q. What is the purpose of tariffs?

A. The primary purpose of tariffs is to protect domestic industries by making imported goods more expensive, but they can also be used to raise revenue or punish countries that engage in unfair trade practices.

Q. How do tariffs affect consumers?

A. Tariffs can increase the cost of imported goods for consumers, which can lead to higher prices and reduced demand for those products.

Q. What is the impact of Donald Trump’s tariffs on China?

A. As of February, there is a 10% tax on all products from China imposed by the US government, with an additional 10% announced later.

Q. How do tariffs affect trade between the US and Canada or Mexico?

A. Tariffs were paused on Canadian and Mexican goods last month, but they are now in effect as of March 4th, with a 25% tax on certain products.

Q. Why did Donald Trump impose tariffs despite misrepresenting how they work?

A. The article suggests that there is a deep misunderstanding of tariffs due to Trump’s false claims about how they work and their impact.

Q. What are the effects of the “dumbest trade war in history” on global trade?

A. The article implies that the US-China trade war has had significant negative impacts on global trade, but it does not provide specific details.

Q. How do tariffs affect the economy?

A. Tariffs can have both positive and negative effects on the economy, depending on the context and the industries affected. They can help protect domestic industries but also increase costs for consumers and potentially lead to retaliatory measures from other countries.