You might have seen the word “tariff” floating around and wondered what it meant. Tariffs have been a very popular topic lately, mainly because the president seems to be very interested in the subject. In simple terms, tariffs are taxes imposed by one country on goods entering from another country.
The latest baseline tariff of 10% started on April 5, 2025. This is not going to be the end of tariffs. President Trump plans to add many more tariffs. These taxes are going to affect everyone, for example: Consumers(us), Businesses, Foreign Exporters, and most of all the US Economy. We will be seeing the effects of these tariffs for years to come.
Let’s dive more into “What are tariffs?” Tariffs are extra taxes on things imported from other countries. There are 60 countries Trump is applying tariffs too. Anything bought from these countries will have an additional tax between 84% to 11%. A 10% tariff on goods means a $10 product would have a $1 tax on top, taking the total cost to $11.
Not all prices will be affected, but all goods that are imported from foreign countries will be. Shoppers will see a rise in prices for things such as Everyday essentials: food, car repairs, clothing, luxury products: electronics, jewelry, cosmetics, big purchases: new cars and homes, also goods made by U.S. manufacturers using imported raw materials and equipment.
A major product that will be affected is fruits and vegetables. This is because approximately 50% to 60% of our produce comes from foreign countries. For example, imported tomatoes, raspberries, bell peppers, avocados, and strawberries from Mexico will go up in price by 25% tariffs.
You might be wondering where all this money is going. The extra money paid by US companies goes to the government, specifically the U.S. Department of Treasury. The U.S. Department of the Treasury is in charge of maintaining the economic stability of the U.S. They maintain systems that are critical to the nation’s financial system. This department plays a crucial role in the nation’s economic stability, managing federal finances, collecting taxes through the Internal Revenue Service, producing currency, and supervising national banks.
Why is Trump applying these tariffs? How does he feel it’s going to benefit our country? Trump thinks that putting such high taxes on foreign goods will encourage consumers to buy more American-made goods. He wants people to only buy from America, not other countries. He also feels such tariffs will lead to major investment in the country. What Trump is trying to do with these taxes is bridge the gap between the value of goods bought by the US from other countries.
The tariffs are going to majorly affect the 60 countries that Trump has applied tariffs to. Italy’s Giorgia Meloni says it’s the wrong decision. “While in Ireland, Taoiseach Micheál Martin said Trump’s decision was “deeply regrettable” and benefitted no-one.” These tariffs are going to have a great negative impact on other country’s economies, and those countries are mad. Some people are expecting this to lead to a Trade war.
These tariffs do have some possible benefits like “Protecting American industries”. By putting such high tariffs on foreign countries it forces businesses and consumers to buy from American manufactured goods. A good thing is the government gets extra funding. There are many cons but there could be benefits of these tariffs.
In conclusion, tariffs are going to have major effects globally and are going to affect people around the world for years to come. Nonetheless there could be benefits like giving extra money to the Department of Treasury or growing the amount of goods manufactured in the United states.
