By Jeffrey Herold
The Trump administration put a 10% tariff on all foreign goods, such as China and Europe. These tariffs, taxes on imports, were meant to protect American businesses and help the American economy. Although they were designed to help the American economy, they have had noticeable impacts on many around the world.
A tariff is a tax on imported goods. Tariffs are intended to make foreign goods more expensive, increasing Americans purchases of products made in the U.S. For instance, the Trump administration applied tariffs on items such as steel, aluminum, clothing, and electronics. The hope was that American-made products would become more affordable than imported ones, benefiting U.S. businesses. But the issue with that is that most of the products we buy and consume come from other countries. Very few products are made in the U.S, hence why trade with foreign countries is so important, and valuable for the U.S economy. The other countries haven’t just sat there and taken these tariffs, with China putting an 125% tariff on U.S goods, and other areas like the EU waiting to act with retaliation tariffs.
One of the biggest effects of the tariffs has been higher prices for U.S. consumers. When tariffs are put into place, businesses pay more for foreign products, which leads to increased prices for consumers. Everyday items like electronics, clothes, and even food have become more expensive. For example, a tariff on steel has resulted in higher costs for cars and construction materials making buildings and homes more expensive to build, and tariffs on clothing will cause clothing prices to rise.
Another affect of tariffs appears to be businesses’ concern with future rules. As a result, world stock markets are down significantly, affecting Americans retirement savings.
The goal of President Trump’s tariffs is to protect American businesses and with the hope that big foreign industries create manufacturing facilities in the U.S. While some industries have benefited, others have struggled. Some small businesses are facing difficult times, and consumers are paying more for everyday items as a result of the tariffs. In this expensive trade war, it remains unclear whether the tariffs in the end will benefit or harm the U.S. economy. For many Americans, the effects of the tariffs create uncertainty.
Graphic by Ryder Navarra
