The latest round of tariffs explained
EL PASO, Texas (KVIA) -- As consumers and companies in the United States and around the world brace for the impact of this most recent round of tariffs announced by the Trump administration, some may be left wondering how they work, and what this will mean.
Simply put, a tariff is a tax placed on imported goods coming into a country. The Trump administration is placing a wide spread of tariff rates on dozens of countries for their goods coming into the U.S., varying based on trade rates.
The company that brings the goods into the country pays the tax to the U.S. government. Those companies could then decide to increase princes since they're paying more to bring the goods.
According to data from the U.S. Bureau of Economic Analysis and the Census Bureau, the U.S. imported more than $4.1 trillion worth of goods in 2024.
Tariffs can raise revenue for the country imposing them - but can then also raise the cost for consumers of those same goods. The exporting countries can also impose their own retaliatory tariffs in turn, potentially leading to a trade war.
The Trump administration is calling the latest tariffs reciprocal - essentially in return for what they claim is already in place based on the trade deficit, or the value difference of what the U.S. exports and imports from a particular country. President Donald Trump also announced a 10% baseline tariff across the board from all goods coming into the country on Tuesday.
