Tariffs are taxes on goods coming from other countries. When a country raises tariffs, it makes imported products more expensive. This encourages people to buy local products instead.
Former U.S. President Donald Trump has announced that from February 1, 2025, the U.S. will increase tariffs on goods from Canada, Mexico, and China. His goal is to:
Protect American businesses by making foreign goods more expensive.
Reduce trade imbalances by making sure the U.S. sells more goods to other countries.
Bring back manufacturing jobs to America.
Higher Prices: Since tariffs increase the cost of imported products, consumers may have to pay more for everyday goods.
Changes in Jobs: Some American industries may benefit, while others relying on imports could struggle.
Tensions with Other Countries: Canada, Mexico, and China may respond by increasing their own tariffs on U.S. goods, which could hurt American businesses that export products
As the tariffs take effect, prices of some goods may rise. Businesses and consumers will need to adjust to these changes. Governments may also negotiate trade deals to reduce the impact.
