Title: What Are Tariffs and How Do They Affect You?
Headings: What Are Tariffs and How Do They Affect You?
What Are Tariffs and How Do They Affect You?
Tariff Basics
Key Takeaways
How a Tariff Works
Trump's Tariffs
Trump and China
Impact on the U.S.
What Tariffs Do FAQs
What Is a Tariff Example?
What Is the Purpose of a Tariff?
Who Benefits From a Tariff?
How Do Tariffs Hurt Consumers?
How Do Tariffs Affect You?

Content: Governments that use tariffs to benefit particular industries often do so to protect companies and jobs. Tariffs can also be used as an extension of foreign policy: Imposing tariffs on a trading partner's main exports is a way to exert economic leverage. The cost of tariffs is paid by consumers in the country that imposes the tariffs, not by the exporting country. Tariffs can have unintended side effects. They can make domestic industries less efficient and innovative by reducing competition. They can hurt domestic consumers since a lack of competition tends to push up prices. They can generate tensions by favoring certain industries, or geographic regions, over others. For example, tariffs designed to help manufacturers in cities may hurt consumers in rural areas who do not benefit from the policy and are likely to pay more for manufactured goods. Finally, an attempt to pressure a rival country by using tariffs can devolve into an unproductive cycle of retaliation, commonly known as a trade war .