What are tariffs, how do they work and who pays for them?

Published On Feb 7, 2025, 5:00 AM

The article explains that tariffs are taxes imposed on goods and services imported into a country. These tariffs are paid by importers at the border, which can consequently lead to higher prices for consumers or lower profit margins for companies. Recent increases in tariffs by the U.S. government, particularly targeting imports from China, Canada, and Mexico, have raised concerns about potential retaliatory measures from trading partners, which could escalate into trade wars. The historical context of tariffs has shifted from being a major source of government revenue to a tool for addressing trade imbalances and protecting domestic industries.