#TrumpTariffs Donald Trump's tariffs have been a topic of discussion among economists and trade experts. Trump sees tariffs as a means to advance US interests, damage enemies, and seek change from other countries ¹. He believes tariffs can make home production more competitive, forcing companies to relocate to the US to avoid tariffs.

There are three main harms associated with tariffs: they raise prices, limit real income gains, and lead to retaliation from other trading nations ¹. Tariffs can also spark trade wars, disrupting global supply chains and hindering economic growth.

The US has the power to impose tariffs under US law, particularly through Section 232 of the Trade Expansion Act 1962 and Section 301 of the 1974 Trade Act ¹. However, the World Trade Organization (WTO) has rules governing tariffs, including the most favored nation status and national treatment clause.

The impact of Trump's tariff plan is expected to be substantial, with potential price effects partially offset by the US's "drill baby drill" policy ¹.