What are Tariffs? Key details on Trump’s 2025 Tariffs Policies

Tariffs or customs tariffs are taxes levied on imported goods. The product is widely used as a tool for trade regulations. They aim to protect domestic industries, generate income and affect international trade momentum. Supporters believe that they protect the local manufacturing industry, but critics emphasize their potential for increasing consumer prices and destroying global trade.

Broken: President Trump imposed tariffs on imports of Canada, Mexico and China in the first official operation of his second trade war. https://t.co/ql1xxsgppi

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-WASHINGTONPOST February 1, 2025

What is tariff?

Tariffs are taxes for imported goods, which aims to regulate international trade and protect domestic industries from foreign competition. Although tariffs can help local manufacturers, they usually increase consumer prices.

Tariff type

type	describe	example
Ad Valorem Tariff	The percentage tax is based on the value of imported goods.	The tariffs of imported electronic products are 25 %.
Specific tariff	The fixed cost of imported goods per unit.	See more : There Is A Brave Zebra Among These Three Tigers. Can You Find The Zebra In This Optical Illusion? Each time you import a $ 1 tariff.
Tariff rate quota	After reaching a specific import threshold, taxation is triggered.	The tax rate of the top 1.2 million washing machine was 20 %, and the additional units were 50 %.

Who pays tariffs?

Contrary to the general views, importing companies rather than foreign governments pay tariffs. The US customs and border protection measures have collected these tariffs from imported goods, and these expenses are usually passed to consumers.

Effect on price:

• Enterprise absorption costs → reduce profit margins.
• Consumers pay higher prices → inflation effect.
• Foreign manufacturers reduce prices → maintain market share.

Why does the government collect tariffs?

The government levies tariffs on imported goods for various economies, social and strategic reasons. Here are some of the main motivations behind the tariff levy:

Data source: CFI

1. Protect the domestic industry

• Tariffs help the local industry to avoid competition caused by cheap imported products.
• By increasing the cost of foreign products, the government encourages consumers to support domestic enterprises, thereby preventing unemployment and promoting economic stability.

2. Ensure consumer safety

• In some cases, imported goods may not meet safety standards or may include harmful substances.
• By levying tariffs, the government does not encourage excessive consumption such products to protect public health.

3. Strengthen national security

• Some industries, such as national defense and energy, are essential for national security. The dependence on these departments will bring risks.
• Tariff reduces its dependence on external suppliers and supports domestic production of strategic products.

4. Promote emerging industries

• New and growing industries often work hard to compete with the established international participants.
• Tariffs make domestic products more competitive, promote innovation and ensure long -term industrial growth to provide a level competitive environment for these departments.

What are the misunderstandings of tariffs?

claim	Reality
“Pay tariff abroad.”	Importers need to pay tariffs, not foreign governments.
“Tariffs generate income for the United States”	See more : Optical Illusion Brain Test: If you have Hawk Eyes find the Word Pest among Best in 20 Secs Although tariffs bring government income, they increase the cost of enterprises and consumers.
“Tariffs have created our job.”	The results were mixed; some industries benefited, but the overall employment impact was uncertain.

How does tariff affect the economy?

Impact on the economy:

Data source: CFI

• Inflation and consumer prices
  • Increasing the tariff rate has increased the overall import cost, which may increase inflation.
  • The effective US tariff interest rate increases from 2.4 % to 31 %, and the inflation rate may increase the inflation rate from 2.9 % to 4 %.
  • The higher inflation has reduced the challenge of the Federal Reserve.
• Impact on trade and manufacturing
  • Some industries (such as steel and washing machines) have experienced work growth due to tariffs.
  • During Trump’s first term, the work of the overall manufacturing industry in the United States has dropped slightly to 12.2 million.
  • China’s exports are facing major losses due to US tariffs. Some estimates have three times the economic impact compared with the loss of the United States.

Imagine	Expected inflation rate
Current American inflation	~ 2.9 %
If the tariff increases	It may rise to 4 %, exceeding the 2 % target of the Federal Reserve

Trump’s view of tariffs

Donald Trump has always advocated tariffs as a means to protect the US industry, reduce trade deficits and put pressure on foreign countries. His method stems from economic nationalism, aiming to bring the employment of manufacturing back to the United States and reduce dependence on imported goods.

1. Tariffs as an economic strategy

• Trump believes that tariffs have inspired domestic production by making foreign goods more expensive.
• He believes that past trading policies have enabled other countries to use the US market, leading to unemployment in steel, manufacturing and agriculture departments.
• His government often uses tariff threats to negotiate better trade agreements.

2. The United States-China Trade Conflict

• Under the leadership of Trump, the United States levies high tariffs on Chinese goods to cope with the unfair trade practices he said, including intellectual property theft and forced technology transfer.
• The Chinese government responded by anti -election, affecting the American industries such as agriculture and technology.
• Trump defended this, claiming that it put pressure on China to benefit trade in the United States

3. Tariffs for American allies

• Trump’s trade policy is not limited to China. He also levies tariffs on Canada, Mexico and the European Union with national security and economy.
• In response, these countries have promulgated retaliatory tariffs, affecting US exports such as dairy products, whiskey and cars.
• In the context of these tariffs, the Mexican-Canadian Agreement (USMCA) was finalized and replaced the North American Free Trade Agreement with stricter trade rules.

4. Recent development (2025)

• Trump has re -introduced tariffs on major trading partners, with the goal of importing from Canada, Mexico and China.
• Canada and Mexico: 25 % of tariffs on imports have extra tariffs on Canadian energy products.
• China: 10 % tariffs on Chinese goods have been promulgated, and it may increase in the future.
• Revenge: Canada and Mexico have announced countermeasures, while China condemns tariffs that violate global trade rules.
• Economic impact: Experts predict that the cost of American consumers is higher, and it is estimated that American families can pay more for imported goods.

5. Criticism and refutation

• Consumer prices rising: Critics believe that tariffs will increase the cost of daily commodities, making foods, electronic products and cars more expensive.
• Trade revenge: Other countries often apply anti -elections to hurt the U.S. industry that depends on exports.
• Employment market uncertainty: Although tariffs are designed to protect domestic work, economic interruptions may offset employment income.

Will the tariff policy improve the manufacturing industry?

• Some industries, such as washing machine manufacturing, increased their work due to tariffs.
• However, during the first semester of Trump (from 12.4 million to 12.2 million workers), the overall manufacturing workload of the United States declined.
• Economists believe that tariffs have failed to restore extensive industrial growth in history.

What is the error message of tariffs?

• Myth: Foreign payment tariffs.
• Reality: American companies pay tariffs and transfer costs to consumers.
• Myth: Tariffs have greatly improved employment.
• Reality: The impact is specific to the industry, and the overall employment growth cannot be guaranteed.

Future of Tariffs

It is estimated that if Trump’s proposed tariffs have come into effect completely, it indicates that:

• American consumers may face an extra cost of $ 2,400 per year.
• Inflation will rise, affecting interest rates and economic stability.
• Global trade tensions may be upgraded, affecting US exports.

in conclusion

Tariffs are still a double -edged sword of economic policy. Although they can protect domestic industries and generate income, they usually lead to higher consumer prices, inflation and trade tensions. Decision makers must carefully balance interests and shortcomings to ensure economic stability.

Source: https://dinhtienhoang.edu.vn
Category: Optical Illusion