What are tariffs, how do you work and why does Trump use you?

US President Donald Trump has announced a number of new import taxes and argues that they will promote American production and protect jobs.

But these tariffs have advised the global economy in chaos, and prices for many products will increase for US consumers.

Customs are taxed for goods that have been bought from other countries.

Usually they are a percentage of the product value.

A10% tariff means that a product of $ 10 has a tax of $ 1 at the top – cover the total costs to $ 11 (8.35 GBP).

Companies that bring foreign goods to the USA must pay the tax to the government.

You can pass on some or all additional costs to customers. Companies can also choose to import fewer goods.

According to Trump, the tariffs will encourage US consumers to buy more goods produced by America, increase the amount of increased taxes and to lead to enormous investments.

He wants to reduce the gap between the value of the goods that the United States buys from other countries, and those that they sell to them. He argues that America was exploited by “fraudsters” and “looted” by foreigners.

In addition to tariffs, the US President made different demands.

When he announced the first tariffs of his current term against China, Mexico and Canada, he wanted them to do more to stop migrants and illegal drugs that the United States reached.

China:

Chinese imports to the United States include everything from iPhones and electric users to children's toys and clothing.

On February 4, Trump presented a 10% tariff on goods from China, which doubled to 20% a month later.

On April 9, he increased the tariffs for most Chinese goods to 145% – with certain products with a tax of 245%.

An exemption for Chinese goods worth less than 800 US dollars ended on May 2. Shipments are now exposed to 90% or 75 US dollars per article – after June 1st increases to $ 150 per article.

In response to Trump's measures, China introduced 125% tariffs for US imports.

Trump also imposed considerable tariffs on China during his first term of office of the President. These were expanded by his successor Joe Biden, who lowered the amount from America.

But the USA still buys a lot more from China ($ 440 billion) than it sells ($ 145 billion).

Canada and Mexico:

Canada and Mexico were also targeted by Trump in February when he introduced a tax of 25% for imports from both countries and a delivery of 10% for Canadian energy.

There were a number of delays and exceptions for these tariffs.

In response to this, Canada introduced a tax of 25% to some vehicles imported from the USA on April 9.

Steel and aluminum:

A 25% import tax for all steel and aluminum that enter the USA – including products from these metals – came into force on March 12.

Cars:

Foreign cars have been exposed to 25% since April 2. This was expanded to imported engines and other auto parts on May 3.

On April 29, Trump alleviated the rules to reduce the effects on US car companies.

10% 'baseline' and higher tariffs:

On April 5, Trump announced that most countries – including the United Kingdom – would have a 10% “baseline” tariff for all goods sent to the USA.

On April 9, he presented a number of much higher tariffs for around 60 countries, which were called “worst offenders” among America's trading partners.

Hours later, he announced a 90-day break in which the 10% “baseline” is paid for by all countries mentioned except China.

In response to this, many countries work on retaliation measures.

Smartphones and computers:

An exception for some electronic devices from China and elsewhere – including smartphones and computers – was announced on April 12th.

Trump later warned that the concession could be short -lived.

Films:

On May 4, Trump said that he wanted to introduce a 100% tariff for foreign films to strengthen the US film industry.

Trumps various announcements have led the global stock markets to volatility in which companies sell shares in their business. Many people are affected by the exchange price changes, even if they do not invest directly in shares due to the effects on pensions, jobs and interest rates.

The value of the US dollar, which is normally considered a safe good, has also dropped in recent months.

The International Monetary Fund (IMF) classified its prediction for global economic growth in 2025 as a result of the tariffs.

America is expected to be hit hardest and says that a US recession is now more likely in 2025.

When Trump marked power 100 days in power, the trade department said that the US economy shrank in the first three months of 2025 after strong growth in the previous quarter.

The president insists that his policy works, but influential voices within his own Republican party have attacked the opposition democrats and foreign leaders to attack the measures.

Price increases are expected in a number of imported goods because companies pass on some or all higher costs.

Adidas and Barbie Maker Mattel are among the global companies that have announced that they are more important to calculate American customers.

Some companies can also decide to import less foreign goods what could do that are more expensive.

The costs of the goods produced in the United States, which imported components are produced using components, will also increase.

For example, the auto parts usually cross several times in the USA, Mexican and Canadian borders before a vehicle is fully installed.

The new tariffs have also led to stricter customs tests on the US limit, which led to delays.

Great Britain exported around £ 58 billion in 2024 to the USA, mainly cars, machines and medicines.

Prime Minister Sir Keir Starrer said that “there will clearly be an economic impact” from the 10% tariff and earlier taxes on steel, aluminum and auto imports.

The car manufacturer Jaguar Land Rover said that it would “pause” all programs in the United States because it would be “about the new trade conditions”.

The United Kingdom is trying to negotiate a trade agreement to alleviate the financial blow from the tariffs – including the proposed submission of foreign films that could damage the British entertainment industry.

So far, the ministers have not announced taxes for US imports. However, they create a list of US products that could be targeted.

Economists have warned that the US tariffs close the British economy away from the course and make it difficult for the government to make their financial rules.