Tariffs are taxes that countries put on imported goods. They can be used for different reasons in global trade. Here are some key ways tariffs work:
Protecting Local Businesses: Sometimes, countries use tariffs to help their own industries. For example, in 2018, the U.S. increased tariffs on steel by 25% and on aluminum by 10%. This was meant to help American manufacturers compete better.
Gaining Advantages in Trade Talks: Tariffs can also be a way to get what a country wants in trade discussions. In the trade conflict between the U.S. and China in 2019, tariffs on Chinese goods reached $370 billion. This pressure was aimed at getting China to change its trade practices.
Shaping International Relationships: Tariffs can change how countries get along with each other. For instance, the U.S. used tariffs on goods from the European Union to negotiate issues like digital taxes and agricultural exports.
Appealing to Voters: When presented well, tariffs can be popular among voters. A poll from 2021 showed that 72% of Americans liked the idea of tariffs to protect local products and jobs.
These examples show how tariffs are connected to both economic policies and political strategies.
Tariffs are taxes that countries put on imported goods. They can be used for different reasons in global trade. Here are some key ways tariffs work:
Protecting Local Businesses: Sometimes, countries use tariffs to help their own industries. For example, in 2018, the U.S. increased tariffs on steel by 25% and on aluminum by 10%. This was meant to help American manufacturers compete better.
Gaining Advantages in Trade Talks: Tariffs can also be a way to get what a country wants in trade discussions. In the trade conflict between the U.S. and China in 2019, tariffs on Chinese goods reached $370 billion. This pressure was aimed at getting China to change its trade practices.
Shaping International Relationships: Tariffs can change how countries get along with each other. For instance, the U.S. used tariffs on goods from the European Union to negotiate issues like digital taxes and agricultural exports.
Appealing to Voters: When presented well, tariffs can be popular among voters. A poll from 2021 showed that 72% of Americans liked the idea of tariffs to protect local products and jobs.
These examples show how tariffs are connected to both economic policies and political strategies.