#CryptoTariffDrop Trump's tariffs are taxes imposed on imported goods and services, aimed at promoting American manufacturing, reducing trade deficits and generating revenue. The Trump administration uses tariffs in three ways ¹:

- *Negotiation Tool*: To pressure trade partners during negotiations and secure new trade agreements.

- *Punitive Tool*: To penalize countries for unfair trading practices or non-trade issues.

- *Macroeconomic Tool*: To protect domestic industries, decrease trade deficits and increase revenue.

Some notable aspects of Trump's tariff policy include ²:

- *Proposed Tariff Rates*: A universal 10% to 20% tariff on imports from all countries, with a 60% to 100% tariff on imports from China.

- *Revenue Generation*: Estimated to raise $2.7 trillion in revenue, which could help offset costs of other policy proposals.

- *Economic Impact*: Critics argue that tariffs would lead to higher costs for Americans, reduced economic growth and lost jobs.

The Trump administration has invoked various legal authorities to implement tariffs, including the International Emergency Economic Powers Act and Section 301 of the Trade Act of 1974 ¹.