What is a Tariff?

Tariffs are taxes on imported goods, making foreign products more expensive.

Who Pays for Tariffs?

Importing companies—not foreign manufacturers—pay tariffs to U.S. Customs.
These costs are often passed to consumers through higher prices.

The newly imposed tariffs have several implications for U.S. consumers:

The Penn Wharton Budget Model estimates an 8 % reduction in GDP and a 7 % drop in wages due to the tariffs.

Middle‑income households could face lifetime losses of up to $58,000.

President Donald Trump has introduced sweeping tariff measures aimed at
reshaping U.S. trade policy.

Baseline Tariff: A universal 10 % tariff on all imports took effect on April 5 2025.
Targeted Reciprocal Tariffs: Higher tariffs (11 – 50 %) on imports from 60 nations deemed “major offenders.”
- Some tariffs were temporarily paused for 90 days (until July 9 2025).
- China faces a 125 % tariff, up from 25 %, escalating trade tensions.
Specific Sector Tariffs: Additional measures include a 25 % tax on foreign‑made cars and increased levies on steel, aluminum, and goods from China, Mexico,
and Canada.