TFK Explains: Tariffs
President Donald Trump has ordered that tariffs be imposed on goods from Canada, China, and Mexico. Here, TFK explains.
What is a tariff?
A tariff is a tax on an item from another country. Imagine that an American company wants to sell cars made in Germany. To bring the cars to the U.S., the company must pay a tax. This money goes to the U.S. government.
Not all foreign goods have tariffs. The U.S. has agreements with countries such as Canada and Mexico. U.S. companies have been able to trade with these countries without tariffs. But that may be changing.
Why is the U.S. imposing tariffs?
The White House released a statement on February 1. It said that the tariffs are meant to hold Canada, China, and Mexico “accountable.” Trump wants the countries to fix issues related to U.S. borders. He has said he may reconsider the tariffs. But the countries have to work on these issues first.
On February 3, the U.S. agreed to delay the tariffs on Mexico and Canada for 30 days. This is because the countries reached deals with the U.S. At press time, the tariffs on China had been put in place.
Whom would the tariffs affect?
Tariffs affect foreign countries by making their products harder to sell. They may also affect consumers. Studies suggest that U.S. shoppers could see higher prices on items such as electronics, meat, and produce.
Produce imported from Mexico is displayed in a grocery store in San Francisco, California, on January 30.
DAVID PAUL MORRIS—BLOOMBERG/GETTY IMAGESHow are people reacting?
Canada has said it will impose its own tariffs against the U.S. “We will stand strong for Canada,” Canadian prime minister Justin Trudeau said on February 1. China says it will also impose tariffs on U.S. goods.
Some Americans are worried. “I feel bad about always having to raise prices,’’ Zach Davis told the Associated Press. He’s co-owner of a California ice-cream shop. But on social media, Trump wrote that the tariffs’ impact will be “worth the price.”
Stop and Think!
WHY do you think TFK wrote this news story in a question-and-answer format? In what other ways could the story have been told?
More from United States
Share a Link
- Click the icon above to copy the url link to your clipboard.
- Paste the link into the location in which you share assignments with students. Examples might include, but are not limited to Canvas, Schoology and Edmodo.
Google Classroom
- Click on the icon above to share the article with a class in your Google Classroom.
- Choose an action. Options might include creating an assignment or asking a question.
