Tariffs: How they work, who pays for them and why Trump loves them
Feb 06, 2025
Tariffs are taxes on goods like toys, cars, and clothes that are coming into a country from other places. The President of the United States, Donald Trump, likes using tariffs to help the country.
When goods come into the United States, the person or company bringing them in has to pay the tariff. But often, that cost gets passed on to the people who buy those goods, like you and me. So, if the price of gas goes up because of tariffs, the people buying gas will have to pay more.
The government gets money from tariffs, but not a lot compared to other ways they earn money. Tariffs were more important a long time ago when there wasn't an income tax. Today, low tariffs mean families can save money on things they buy every day.
President Trump thinks tariffs can help make the country better. He wants to use them to get more money and bring in more companies to the United States. But not everyone agrees that tariffs are the best way to do things.
In the end, tariffs are a way for the government to make money, protect American businesses, and change how things are bought and sold between countries.