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What exactly are tariffs and how do they work?

Tariffs are taxes imposed on imported goods, designed to protect domestic industries by making foreign products more expensive. Historically, tariffs have been used to raise revenue and shield local businesses from international competition. The Trump administration notably escalated the use of tariffs, particularly targeting China, in an effort to reduce the trade deficit and encourage domestic manufacturing. This approach led to a trade war, with retaliatory tariffs from China affecting U.S. exports like soybeans and pork. Critics argue that these tariffs increase costs for American consumers and businesses, potentially fueling inflation, while supporters believe they strengthen national security and economic independence. The economic impact of these tariffs has been debated, with some studies suggesting they might have cost the U.S. economy billions, although the exact effects are complex due to various economic factors at play.

Read the Full THE WEEK Article at:
[ https://theweek.com/personal-finance/tariffs-what-are-they-trump-us-economy ]