You had questions about tariffs. Here’s what to know.

The recent wave of tariffs imposed by the Trump administration has sent shockwaves through the global economy, impacting consumers, businesses, and investors alike. While President Trump has announced a temporary pause on most new tariffs, he has increased import duties on Chinese goods to 125%, escalating tensions between the world’s two largest economies.

One of the key questions surrounding these tariffs is their legality. Tariffs are permitted under World Trade Organization rules, but there are restrictions in place to ensure fairness. Historically, the U.S. has fluctuated in its tariff rates, with the current rate at 22%, the highest since 1909.

The Trump administration’s goals with these tariffs are twofold. In the short term, they aim to pressure other countries into more favorable trade deals. In the long term, the administration hopes that higher tariffs will encourage both domestic and foreign companies to invest in domestic manufacturing, creating jobs and boosting economic growth.

Critics of the tariffs argue that they act as a tax on businesses and consumers, leading to higher prices and potentially slowing economic growth. However, supporters believe that targeted tariffs can protect critical U.S. industries and workers from unfair competition.

The impact of these tariffs on consumers is significant, as businesses typically pass on the added costs to consumers through higher prices. For example, tariffs on washing machines led to an 11% increase in prices. Imported fruits, vegetables, and nuts were set to rise by 19%, with domestic prices also likely to increase.

Economists warn that the tariffs could lead to a recession, with GDP growth slowing and inflation rising. Leaving the tariffs in place could have long-term negative effects on the economy.

President Trump’s end goal with these tariffs is to bring back manufacturing jobs to the U.S. However, experts are skeptical that this goal can be achieved, citing the challenges of investing in new infrastructure and finding skilled workers.

There are several ways the tariffs could be stopped, including congressional intervention, court rulings, or market volatility. The recent pause on tariffs followed a significant drop in the stock market, highlighting the potential impact on the economy.

In conclusion, the Trump administration’s tariffs have sparked debate and uncertainty in the global economy. The long-term effects remain to be seen, but the immediate impact on consumers and businesses is already being felt.