#TrumpTariffs Customs duties are taxes imposed on goods imported from other countries. Typically, these taxes are a percentage of the value of a product. For example, a 25% tariff on a $10 product means an additional cost of $2.50.

Companies that import foreign goods must pay this tax to the government. Firms can choose to pass on part or even the entire amount to consumers, which leads to higher prices.

Why Trump uses tariffs

Customs duties are a central component of Trump's economic vision. He has even stated that "tariff" is "his favorite word." He argues that these taxes will encourage American consumers to buy more products made in the USA, thus stimulating the economy and increasing tax revenues.