What are tariffs, how do they work and why is Trump using them?

In an increasingly trade war, US President Donald Trump put a tariff of up to 145 % on Chinese goods. China responded by 125 % on American products.

Trump also provided a 10 % tax on the goods from the vast majority of other countries, while stopping rates for dozens of countries for 90 days.

He argues that the customs tariff will enhance manufacturing and protecting jobs, but the global economy has been thrown into chaos and prices are expected to rise.

Customs duties are the taxes imposed on the goods purchased from other countries.

Usually, it is a percentage of the product value.

The tariffs on the goods by 10 % of most countries means that a $ 10 product will receive a $ 1 tax in the foreground – as the total cost increased to $ 11 (8.35 pounds).

It will take a fee of 145 % on some Chinese goods, the cost of a $ 10 product to $ 24.50 (18.60 pounds).

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

They may pass some or all the increasing cost of customers.

Trump says the definitions will encourage us to consumers to buy more US -made goods, increase the amount of the tax that is raised and leads to huge levels of investment in the country.

He wants to reduce the gap between the value of the goods that the United States buys from other countries and those it sells to them. He argues that America has benefited from the “cheaters” and “looting it” by foreigners.

The US President submitted other demands besides definitions. The first during his current term was announced by China, Mexico and Canada, after he said he wanted them to do more to stop immigrants and illegal drugs that reach the United States.

Trump strongly defended his definition policy, but influencing voices within his Republican party Join the Democratic opposition and foreign leaders in attacking measures.

Since Trump’s inauguration in January, there has been a set of advertisements related to definitions, as other countries have been scrambling to respond.

Mexico and Canada:

Trump targeted Canada and Mexico in February Previous round of high definitions. The president announced a 25 % tax on exports from both countries to the United States and a 10 % tax on Canadian energy.

There has been a number of exemptions and delay since then. The “foundation line” rate does not apply by 10 % to Trump.

Steel and aluminum:

Importing tax entered 25 % on all steel and aluminum entering the United States, including products made of these minerals on March 12.

Cars:

The White House announced in March that the graphics 25 % on cars will be applied as of April 2.

A 25 % similar tax is scheduled to come on car pieces by May 3.

The higher definitions stopped:

The customs tariff was presented to about 60 countries, which the American president described as “the worst criminals”, on April 9.

Trump then announced a temporary stop for 90 days, as the “foundation” rate will be paid by 10 %, with the exception of China.

China:

A 10 % tariff on goods from China to the United States was detected in February – along with taxes on products from Mexico and Canada.

The definitions of China have increased since then to 125 %.

However, Chinese product taxes will be determined by 145 %, due to a 20 % previous tax for those who produce drugs.

China put the definitions of US imports by 125 % from April 12 and said it will not respond to any other increases in the United States because it would become a “joke”.

Smartphones and computers:

Exempt some electronic devices including smartphones and computers, which are created until April 5, It was announced on April 12.

But Trump and then said that technology exemptions from China could be short -lived.

The United States is currently running a commercial deficit with China. In 2024, the United States imported much more than China ($ 440 billion) from Beijing imported from America ($ 145 billion).

During his first term as president, Trump imposed a great tariff on China, which was kept and expanded by his successor, Joe Biden.

These commercial barriers together helped reduce the amount that the United States bought from China from 21 % of America’s total imports in 2016 to 13 % in 2024.

However, China still charges everything from iPhone to children’s games to the United States. Analysts indicated that some Chinese goods enter the United States across the neighboring countries of Southeast Asia, which may mean that they can avoid tariffs of 145 %.

Many economists expect that the customs tariff will rise through a group of imported goods, as companies go through some or all their growing costs.

The affected products can include everything from clothes to coffee and alcohol to electronics.

Some companies may also decide to import fewer foreign commodities, which may make those that Available more expensive.

The price of cargo manufactured in the United States may rise using imported ingredients.

For example, auto parts usually cross the American, Mexican and Canadian border several times before the car is fully assembled.

It was already expected to increase cars prices as a result of the previous definitions, which remain in place.

The cost of a car made using spare parts from Mexico and Canada alone may rise between 4000 and 10,000 dollars (3,035 pounds sterling – 7,588 pounds), according to the car, according to analysts in Anderson Economic Group.

Trump’s definitions ads caused great fluctuations to global stock markets.

The stock markets are where companies sell stocks in their business. It reflects the best guess of what every company in the world deserves and what their future profits are.

Many people are affected by the low price of the stock market, even if they do not invest in stocks directly, due to its impact on pensions, jobs and interest rates.

The United Kingdom was exported About 58 billion pounds from goods to the United States in 2024Especially cars, machines and pharmaceutical preparations.

It was already scheduled to be affected by the previous definitions targeting steel, aluminum and cars imports.

“It is clear that there will be an economic impact” from a 10 % tariff, “Prime Minister Sir Kerr Starmer said.

The UK is looking to negotiate a 10 % commercial agreement, but one of the advisers of President Trump indicates that any such deal should be “unusual”.

The UK government has not yet announced any taxes on US imports. However, it puts The list of American products that can reach revenge definitions.

After announcing the customs tariff, the Jaguar Land Rover said that he will “stop” all shipments to the United States because it worked to “address the new trading conditions.”

Economists have warned that the customs tariff would be that the economy in the UK has been hindered from the path and makes it difficult for the government to reach borrowing bases.

For the countries of Donald Trump, the so -called “Worse Crime” menu, there was signing when the definitions were temporarily reduced to 10 %. But the effect of the low rate is still a serious concern for them.

The European Union is among those looking for a trade deal with the United States during a 90 -day stoppage period. European Union President Ursula von der Lin said that the bloc is also “developing retaliatory measures” in the event of the failure of the talks if the talks fail.

PolandPrime Minister Donald Tusk urged all parties to “achieve better” to stop for 90 days, stressing that maintaining strong relations with the United States “is a shared responsibility of Europeans and Americans.”

GermanyNext advisor Friedrich Mirz said that the temporary suspension proves that the unified European approach to trade has a positive impact, adding: “The Europeans are determined to defend ourselves.”

VietnamDeputy prime minister Ho Doc Fook said that the United States and Vietnam expected to begin “negotiations on a bilateral trade agreement”, which will “include customs tariffs.”

CanadaThose targeted with the tariffs of more than 10 %, provided a 25 % tariff on some vehicles from the United States on April 9.

Additional reports by Jacques Burgis.