Donald Trump's tariffs have been a topic of discussion, especially with his plans to impose additional tariffs during his second term. Trump has proposed a 25% tariff on Canada and Mexico, and an additional 10% tariff on goods from China ¹.
These tariffs are taxes placed on imports, which are paid by domestic importers, but often passed on to consumers in the form of higher prices ¹. The impact of tariffs on the US economy is complex. They can make it more expensive for domestic firms to import goods, but may also benefit domestic producers by making their goods more competitive ¹.
However, many experts argue that tariffs can have negative effects, such as increasing costs for consumers, reducing trade, and potentially leading to retaliatory measures from other countries ² ¹. Some also question the constitutionality of Trump's tariff plans, arguing that he may not have the authority to unilaterally impose tariffs ².
It's worth noting that Trump's tariff policies have been a departure from the trend of decreasing tariffs since the 1970s ¹. His use of tariffs as a threat to extract concessions on non-trade related matters has also been seen as unconventional ¹.