Tariffs are taxes charged on goods bought from other countries. Companies bringing foreign goods into the US must pay the tax to the government.
Normally, they’re a percentage of a product’s value. For example, a 10% tariff means a $100 product would have a $10 tax on top, taking the total cost to $110.
Trump says tariffs will encourage US consumers to buy more American-made goods, which can stimulate economies with new jobs and reinvestment.
Trump wants to reduce the gap between the goods the US buys from other countries and the goods it sells to them. Trump argues that America has been taken advantage of by “cheaters” and “pillaged” by foreigners.
Trump has also made other demands along with his tariffs. When he recently announced tariffs on China, Mexico and Canada, he said he wanted them to do more to stop migrants and illegal drugs reaching the US!