#TrumpTariffs

Trump's tariff policy is a complex strategy that uses tariffs in three main ways:

- *Negotiation Tool*: Tariffs are used to pressure trading partners during negotiations, increasing the United States' leverage to secure new trade agreements, such as the phase one trade deal between the United States and China.

- *Punishment Tool*: Tariffs are used to punish countries for their unfair trade practices or non-trade issues, such as alleged unfair trade practices.

- *Macroeconomic Tool*: Tariffs are used to protect domestic industries, reduce the U.S. trade deficit, and increase revenue from tariffs.

Some key countries and their corresponding tariff rates¹ include:

- *Canada*: 25% tariffs on U.S.-origin goods worth $30 billion, with additional tariffs on certain products such as dairy and lumber.

- *China*: 34% tariffs on all products, including goods from Hong Kong and Macau, with an additional 10% tariff based on value on U.S.-origin goods.$ETH