It was one of those instances that felt like a shockwave had been sent through the entire hemisphere. A moment most of us knew was coming, but perhaps not so quickly. Early on in his campaign, President Donald Trump announced a new pillar in his administration’s plans; high tariffs on foreign goods. And just as promised, last week  he raised tariffs on roughly 90 countries, with percentages ranging from 10% (think Australia) to 104% (think China). These changes were met with extreme skepticism and yesterday Trump stated that he is suspending the tariffs for 90 days, but keeping the 10 percent tariff rate in place. So the true question is, if these tariffs are put in place, how will it affect the average american?

To truly understand the relationship between tariffs and the economy we first need to look at what exactly a tariff is . In layman’s terms, a tariff is a form of tax that is foisted on imports from other countries. Usually they are a percentage of a product’s value. Companies that bring the foreign goods into the US are required to pay the tariff to the government. What many Americans don’t know is that higher tariffs could actually have a significant impact on American prices. 

Trump’s new tariff placed on Chinese imports would have the largest impact on the American economy as China’s factories are responsible for more exports than any other nation in the world. They are the top supplier of US goods, making up about 16.5% of overall imports. A higher tariff would make products coming out of China exponentially more expensive, specifically our electronics, toys, and clothing. Similarly, if higher tariffs are placed on Mexico and Canada we could also see an uptick in grocery prices, as these countries are huge agricultural exporters. Americans have already seen a huge increase in overall expenses, and many economists say high tariffs will only make the situation worse. 

Despite this, President Trump has continued to argue that the US will benefit from high tariffs, and he cites the need for more Americans to purchase American made goods and that we have become victims of foreign price gouging. While some politicians in the Republican party oppose this idea, many rally in support. The suspension of the tariffs have caused some to speculate that Trump is back-tracking on these taxes after the outcry over a national economic downturn. It’s likely that in the next 90 days there will be lots of heated debates on the subject, as the gaping polarization between the two parties will continue to widen. These tariffs fuel the fears of a recession amongst experts, but the White House continues to downplay the severity of the situation.