He has pledged to impose tariffs, which are a type of tax, of up to 60% on all imports from China and 20% on goods from other nations. He has also suggested taxing some imported autos by 200%.
A key component of Trump’s economic strategy is tariffs, which he views as a means of boosting the US economy, preserving jobs, and increasing tax receipts.
These taxes are “not going to be a cost to you, it’s a cost to another country,” he asserted throughout the campaign.
Economists virtually all agree that this is misleading.
In actuality, a tariff is a domestic tax that is applied to products as they enter the nation and is based on the import’s value.
Therefore, a $50,000 (£38,000) car that is imported into the US and is subject to a 10% duty would be charged $5,000.
The home company that imports the items, not the foreign corporation that exports them, is responsible for physically paying the levy.
In that regard, it is a simple tax that domestic US businesses pay to the US government.
In 2023, the United States imported over $3,100 billion worth of products, or 11% of its total GDP.
