Be For Real: What Are Tariffs?

You’ve probably heard The President talk about tariffs and say things like, “We’re going to make other countries pay.”

The truth is, when tariffs are in place, it’s you who ends up paying more.

A tariff is a tax, or an added charge on things that come into this country from other countries. The stores that sell us these things have to charge us more for them so they can pay for that extra cost. This means that everything gets more expensive - clothes, electronics, furniture, and even food.

That’s how tariffs work, and that’s what’s happening now. So even though tariffs sound like a way to punish other countries, it’s regular people here at home who pay the price.

Another claim about tariffs is that they will create more jobs for US workers. In fact, they can be a real job killer, at least in the short term. When tariffs are in place, some companies have to lay off workers or shut down altogether. Small businesses and corner stores are sometimes forced to close up shop because they can’t afford to stay open.

The President may talk about how tariffs are going to make things better, but the truth isn't that simple. Before things can get better, they can get worse. Prices go up, some businesses struggle to stay open, and workers can lose their jobs.

Understanding how tariffs work helps you see the bigger picture behind rising prices.