Donald Trump’s tariffs, explained

If you live in the US, congratulations – you are now a foot soldier in what has been called “the dumbest trade war in history.” And if you live in one of the top three countries that trade most with the US (Canada, Mexico, and China), apologies: you are part of this as well.
Donald Trump loves tariffs despite regularly misrepresenting how they work, and after months of saying he would impose them on goods coming into the US, he made good on his promise this week: there is a 10 percent tax on all products from China imposed as of February, plus an extra 10 percent announced this week. After pausing tariffs on Canadian and Mexican goods last month, those also apply as of March 4th – a whopping 25 percent on our neighbors that will affect everything from lumber to tomatoes.
There’s a deep misunderstanding of tariffs, in part thanks to Trump’s false claims. Who pays tariffs? What do they actually do? How do they affect consumers? Let’s talk about it.
Leave the word “tariff” aside for a second and think about it like this: it’s a tax. Specifically, tariffs are a tax set by the government on goods and services that come from abroad. They can be wide reachin …
Read the full story at The Verge.