![trade and trade related words on wooden table]({"aperture":"0","credit":"","camera":"","caption":"Photo by Markus Winkler on <a href=\"https:\/\/www.pexels.com\/photo\/trade-and-trade-related-words-on-wooden-table-19891035\/\" rel=\"nofollow\">Pexels.com<\/a>","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"trade and trade related words on wooden table","orientation":"0"})
A tariff is a tax on imported goods designed to protect domestic industries, often leading to higher costs for consumers and importers. While tariffs can safeguard key industries, they can also negatively impact others and lead to higher consumer prices. Under former President Trump, tariffs—especially on Chinese imports—were used to pressure trading partners and boost U.S. manufacturing. However, research indicates that these tariffs resulted in job losses and uncertainty in some sectors. Historically, the U.S. has moved toward lower trade barriers, but Trump’s tariffs marked a shift, increasing import costs and escalating trade tensions.
What Is A Tariff, Who Pays And What Are The Impacts? | Investor’s Business Daily (investors.com)
There’s a misconception or a misunderstanding or just lack of education when it comes to tariffs. For the record, a tariff is paid for by the IMPORTER, not the EXPORTER. So, this notion that China will pay money to the United States government for exporting goods to the U.S. is incorrect. If Walmart imports a widget and there’s a 10% tariff on that widget, Walmart has to pay 10% more for the product they are importing into the U.S. It’s up to Walmart if they pass that extra expense off to the consumer, whether fully or partially. The only way this hurts China (for this example) is if Walmart decides to buy their widgets from a local U.S. company where they don’t have to pay the 10% tariff. That’s the ENTIRE purpose of tariffs.