Tariffs: what's up with that?

Tariffs are government taxes on imported and exported goods, serving as a way for the government to make some money and promote a domestic industry. Now that we have established what a tariff is, we can discuss President Trump’s tariffs— what they are, what they mean and how they will affect America. 

Tariffs directly affect the prices of imported goods, causing a shift away foreign products, and can help local economies by giving an incentive to buy American products instead. They can change trade relationships internationally, altering foreign relations in general as well. 

An extreme outcome would be trade wars between not just the countries mentioned but those associated with them, hindering international economies and causing increased job loss, the opposite of what has been promised by POTUS. 

The tariffs are supposed to be enacted on March 12, 2025 after being on pause for a whole month. Trade negotiations are being made by the European Union to try to avoid any wars or conflict. Retaliation tariffs are predicted from Mexico, Canada and China if the U.S. does not remove theirs soon after being enacted.

According to University of Virginia executive Rodney Sullivan, important industries that would potentially take most of the blow would be “agriculture, automotive and energy sectors”. Agriculture will be affected because of how much of our produce we import from countries like Mexico. NPR reported that Herbicide or fertilizers from China will also heavily contribute to issues in the agricultural community as China has already blacklisted many American farming companies. Because of Canada’s large contributions of raw materials and products that supply our automotive industry, these tariffs will likely affect prices on things like car parts. Canada has also placed retaliation tariffs on imported goods to the U.S. until Trump’s actions are withdrawn.

It is essential to remember that these are just probable outcomes. These tariffs are only meant to be enacted until Mexico, Canada and China give the U.S. the trades they want. This could end in massive trade wars or a victory for the U.S. with increased trade profits. 

Tariffs are not all bad, they are important to every country around the world, bringing in money and giving advantages to even the smallest of places. They are sensitive and temperamental as well. Being educated on what is happening with the economy can help you better understand current events and your own economic future.