Tarrif 101
Think tariffs are just a political buzzword? Think again!
A tariff is basically a tax on imported goods. Let's break it down:
China sells a phone to the US for $1,000.
Trump adds a 30% tariff... BAM! The price jumps to $1,300.
That extra $300? Goes straight to the US government.
But here's the catch: the higher price might scare off buyers, hurting sales and stock prices.
To stay competitive, China might lower the export price... but that cuts their profit.
Either way, exporters lose.
And since many Asian countries rely on the US market, these tariffs can have serious consequences.
The bottom line: tariffs drive up prices, cut profits, and send shockwaves through the global economy.
Now you're in the know!