Understanding Tariffs and Their Impact

Tariffs are essentially taxes imposed on imported goods, affecting not only importers but also consumers, who may face higher prices as a result. About 50% of the tariff costs are typically passed on to consumers, leading to an increase in market prices. The recent discussions surrounding tariffs have highlighted their resurgence, particularly under the Trump administration, which views them as a strategy to protect American jobs and industry. This approach contrasts with previous administrations that introduced tariffs sparingly and often with specific trade deals in mind.