Understanding Tariffs and President Trump’s Recent Proposals
What Are Tariffs?
Tariffs are taxes or duties imposed by a government on imported goods. The primary purpose of tariffs is to make imported goods more expensive, encouraging consumers and businesses to buy domestically produced alternatives.
However, they can also generate revenue for the government and are often used as a tool in international trade policy to negotiate better terms or protect strategic domestic industries.
Recently, President Trump has been issuing and threatening tariffs to help curb the flow of illegal aliens into the US, as well as attempting to get cooperation in curbing the flow of fentanyl into the country.
There are two main types of tariffs:
• Ad Valorem Tariffs – A percentage of the value of the imported good.
• Specific Tariffs – A fixed amount of money charged per unit of the imported good.
While tariffs can support domestic industries by limiting foreign competition, they can also lead to higher prices for consumers and potentially provoke retaliatory measures from trading partners. This has been well documented in the media since the beginning of 2025.
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