Over the last few weeks, the word ‘tariffs’ has jumped in search trends following President Donald Trump’s announcement of his tariffs on March 1st. These tariffs, though applicable to most of the globe, largely focus on the U.S.’s top three biggest trade partners, Canada, Mexico, and China. These tariffs are claimed by President Trump to be intended to encourage the production of American-made goods. However, with this sudden decision comes many people who are wondering what exactly tariffs are and how they will affect the average person. 

In its simplest definition, a tariff is a type of tax placed on imported goods by the government of the receiving country. These taxes are paid by the companies who purchase the goods, but the additional cost is often passed onto the consumer by raising the overall price once the goods hit the general market.

The “Trump Tariffs,” as they’ve come to be known, initially started on February 4, 2025, when Trump imposed a 10% tariff on goods from China. On March 4, 2025, Trump announced these tariffs would increase to 20%, as well as announcing the implementation of a 25% tariff on all goods imported from Mexico and Canada. In addition to these imported goods, these tariffs also included an additional 10% increase on energy sourced from Canada. The U.S. sources nearly all of its crude oil, petroleum, and natural gas from Canada, a supply that is currently at risk of inflation due to the increased prices. 

Despite the backlash not just domestically but internationally as well, Trump has even grander plans to impose further tariffs on these countries starting April 2, 2025. These tariffs have prompted responses from the affected countries, especially Canada, China, and the European Union. In response to Trump’s initial Feb. 1 tariffs, China announced a 10-15% tariff on coal, oil, and natural gas from the U.S. on February 10, 2025. This was soon followed by a 15% tariff on U.S.-grown crops and animal meat after Trump’s Mar. 4 tariffs. 

In response to the actions taken by the U.S., Canada imposed various tariffs of their own, including a 25% tariff on steel and aluminum imports from the United States on March 13, 2025. This tariff is estimated to affect $20.6 billion worth of goods being imported from the U.S. into Canada. The EU is taking similar retaliatory measures, intending to reinstate various tariffs of their own on U.S. goods starting in April, which would bring back the ones imposed during Trump’s first term.

All of this taken into affect, many wonder how it will affect them. Although it appears as if nations are simply placing numbers on products, the larger impact it has on the general public is not hard to see. In 2022, China, Mexico, and Canada were the U.S.’s top three trade partners, far outpacing Japan and Germany, who were fourth and fifth respectively. China alone accounted for over 16% of U.S. imports in 2022 and all three combined accounted for 40% of all of the U.S.’s imports in 2024. With these three nations holding some of the biggest shares of our imports, tariffs targeted at them will, naturally, hike prices in countless areas of life.

Although it is difficult to estimate just how much prices will go up, many economists have stated that these unnecessary tariffs will harm not just the U.S., but the global economy as well. Soon after the announcement of the tariffs, Wall Street watched as the U.S. stock market dropped, with many affected companies losing shares.

With inflation on the rise around the world, a trade war is the last thing many believe we need. As a result of these tariffs, Americans can expect higher prices in not just products in a grocery store, but increased gas prices and manufactured goods like electronics. With greater tariffs expected to go into effect in April, the future of the global trading industry looks bleak. The average American can only hold their breath as each country’s representatives attempt to negotiate a mitigation to this sudden trade war. Perhaps sometime in the future tariffs will go back to as they were, but, for now, the citizens of this country can only watch as prices continue to climb.