What is a tariff, exactly?

A tariff is a government-imposed tax or duty on imported (or sometimes exported) goods, making them more expensive to raise revenue, protect domestic industries from foreign competition, or exert political pressure. This extra cost, often a percentage of the product's value, is paid by the importer to the government and can be passed on to consumers, increasing prices for everyone.

What is a tariff in simple terms?

Tariff. Tariffs are taxes imposed by one country on goods imported from another country. Tariffs are trade barriers that raise prices, reduce available quantities of goods and services for US businesses and consumers, and create an economic burden on foreign exporters.

What are tariffs and why are they bad?

Tariffs are a regressive way to raise revenue. If low-income households consume more of their income and spend more on goods (affected by tariffs) than services (less so), tariffs are regressive because they force those with lower incomes to pay out a higher share of their income than higher-income households.

What is Donald Trump's tariff?

January–March 2026

On January 17, Trump threatened an additional 10% tariff on goods from 8 European countries unless they supported his purchase of Greenland. He said that the tariff would begin February 1, and rise to 25% on June 1 unless a deal was reached.

What does 120% tariff mean?

The U.S. Customs and Border Protection (CBP) uses specific criteria to classify these shipments, which are now subject to a 120% tariff. This means that if a small parcel is valued at $100, the importer must pay an additional $120 in tariffs, making the total cost $220.

What is a Tariff? How do Tariffs Work?

Why am I getting a tariff charge?

A customs duty (AKA tariff) is a charge imposed by a government on goods imported into a country. These charges help regulate international trade and protect domestic industries. The amount is typically based on several factors, including the product's harmonized tariff code, country of origin, and declared value.

Is the 25% tariff still on?

As of September 1, 2025, the Government of Canada's 25% tariff applies only to steel and aluminum products and auto imports originating from the US. Consult the complete list of US products subject to counter tariffs.

Which president was famous for tariffs?

The Tariff Act of 1890, commonly called the McKinley Tariff, was an act of the United States Congress framed by then-Representative William McKinley, that became law on October 1, 1890.

Did Trump's tariffs fail?

As an objective matter, tariffs have failed to deliver an increase in manufacturing employment in this country this year. Uh matter of fact, over the last year, manufacturing employment has gone in the wrong direction.

Will Trump's tariffs cause inflation?

Trump's tariffs haven't caused the surge in prices that many economists predicted. The highest tariffs in almost a century haven't caused the massive surge in inflation many economists feared. But that shouldn't have come as a surprise, according to two new studies.

Why do people hate the tariffs?

Tariffs are a tax on imports, and they will raise prices for households and, crucially, for businesses that rely on imported inputs to make their products. Not only will prices rise for the imported products, so will the prices of goods produced at home that compete with imports.

Who is hurt by tariffs?

Tariffs disproportionately hurt the poor. This can be seen from data reported in the Consumer Expenditure Surveys. In 2023, the top 10% of households (in terms of pre-tax income) paid an average of 23% of that income in income taxes. The bottom 90% paid 9%.

Do tariffs hurt the poor?

Key Takeaways. Because tariffs directly reduce the purchasing power of low-income households (either by decreasing nominal incomes or by increasing prices), they also affect poverty.

Who benefits from a tariff?

Consumers, both individuals and businesses, are negatively impacted by higher prices. However, the domestic industry protected by the tariff, such as U.S. coffee producers, benefits by being able to sell more of their product. The government also benefits by collecting additional revenue from the tariff.

Why is Trump putting a tariff on Canada?

On July 11, Trump announced in a letter sent to Carney that the US would raise the tariffs to 35%, starting August 1. He cited the retaliatory tariffs imposed by Canada against the US as the main reason, as well as the continued flow of fentanyl into the US from Canada and the trade deficit with Canada.

What country has the highest tariffs?

With the prospect of increased tariffs looming, World Finance lists the countries that impose the highest charges on imported goods.

• 1 – The Bahamas (18.56%) ...
• 2 – Gabon (16.93%) ...
• 3 – Chad (16.36%) ...
• 4 – Bermuda (15.39%) ...
• 5 – Central African Republic (14.51%)

Did Biden get rid of the tariffs?

By the end of Trump's first presidency, the trade war was widely characterized by American media outlets as a failure for the United States. The Biden administration kept the tariffs in place and added additional levies on Chinese goods such as electric vehicles and solar panels.

What to buy before tariffs?

Splurge Now, Save Later? 4 Things to Buy Before Prices Rise. Don't let tariffs scare you, but do get ahead of big purchases if you can. Appliances, iPhones, cars and imported booze all make our list.

Could the tariffs be stopped?

If Congress wanted to push back against President Donald Trump's tariffs, it could have done so at any time by voting to end the White House's declaration of a national emergency, which, Trump claims, grants him sweeping trade powers.

Which President had the highest tariffs?

The High-Tariff Era: The Late 19th and Early 20th Century

The Smoot-Hawley Tariff Act of 1930, signed by President Herbert Hoover, remains one of U.S. history's most infamous tariff policies. Enacted during the early days of the Great Depression, it significantly raised tariffs on over 20,000 imported goods.

Why was President McKinley assassinated?

Czolgosz, a Polish immigrant, grew up in Detroit and had worked as a child laborer in a steel mill. As a young adult, he gravitated toward socialist and anarchist ideology. He claimed to have killed McKinley because he was the head of what Czolgosz thought was a corrupt government.

Who started the tariffs and why?

Responding to an urgent need for federal revenue and in light of concerns over the trade balance, the First United States Congress passed, and President George Washington signed, the Hamilton Tariff of 1789, which authorized the collection of duties on imported goods.

Do you have to pay tariffs at the border?

The Canada Border Services Agency collects duty and taxes on imported goods, on behalf of the Government of Canada. Note: As of September 1, 2025 , the Government of Canada's 25% tariff applies only to steel and aluminum products and auto imports originating from the US and is charged as a surtax.

Do we get 60% of our oil from Canada?

In recent years, 60% of all US crude oil imports have come from Canada, according to the US Energy Information Administration.

What cars will be affected by the 25% tariff?

President Donald Trump today announced a 25% tariff on all cars built outside the U.S. and many parts used in cars built here. The move will raise the price of many cars, including models sold by American automakers but built elsewhere.