Understanding Tariffs and Their Authority

Tariffs are essentially taxes imposed on imported goods, which raise the cost for consumers and can serve strategic purposes for the government. The authority to impose tariffs is granted to the President of the United States through various legislative acts, allowing for unilateral action without needing Congressional approval. This power is intended to address issues such as national security and trade imbalance, where the President can respond to perceived threats by adjusting tariffs. For instance, a 25% tariff on a $10,000 car would increase its cost to $12,500, directly impacting market dynamics.