Tariff seems to be one of the favorite buzzwords of U.S.president Donald Trump.
What are they, how do they work and why does Trump think they are the "most beautiful" solution for America's economy?
#tariffs #us #economy #trade #trump
What are they, how do they work and why does Trump think they are the "most beautiful" solution for America's economy?
#tariffs #us #economy #trade #trump
Category
🗞
NewsTranscript
00:00I always say tariffs is the most beautiful word to me in the dictionary.
00:04Tariffs. Trump's favorite economic buzzword.
00:07So what exactly is a tariff and how do they work?
00:09Simply put, a tariff is a tax that governments place on goods entering their country from abroad.
00:14Think of it as a fee for crossing the border.
00:16For example, if an American car company imports parts from Mexico,
00:20those parts are taxed when they arrive in the US.
00:23That's the tariff.
00:24But here's the kicker.
00:25This tax isn't paid by the foreign country.
00:28It's paid by the American company bringing in the goods.
00:30They do so by raising prices for you, the consumer.
00:33Now why does Trump love tariffs?
00:35For Trump, trade is a game of winners and losers
00:38and he thinks the US has been losing for decades.
00:41He often points to countries like China, Mexico and Germany,
00:45accusing them of unfair practices like stealing American intellectual property,
00:49manipulating their currency and flooding markets with cheap subsidized goods.
00:54Tariffs to him are the ultimate weapon to fight back.
00:57Besides, tariffs were part of his promise to bring jobs back to American shores.
01:02His message to manufacturers was clear.
01:04Move production to the US and you avoid tariffs.
01:08It was a rallying cry for workers in places hit hard by globalization and job losses.
01:13But here's the problem.
01:14Global supply chains are like Jenga towers.
01:16Move one piece and the whole thing could collapse.
01:19Building factories takes years and most companies can't simply pack up and move.
01:24Instead, tariffs often just raise costs and consumers feel the pinch through higher prices.
01:30So are tariffs truly the most beautiful solution for America's economy?
01:34Well, the debate continues.