President Trumps tariff plans that he talked about during his campaignare in full swing.
But what are tariffs in simple terms, and how do they affect people like you and me?
Heres what it means in plain English.
What Are Tariffs, and How Do They Work?
Tariffs are taxes on imported goods and are used to restrict imports.
The idea is to encourage people to buy domestically made goods instead.
This makes American-made laptops more competitive in price.
There are many types, but the two most common ones are specific tariffs and ad valorem tariffs.
Stressed Out By Tariff News?
Why Do Governments Impose Tariffs?
If they make imported goods more expensive for domestic consumers, why do governments impose them?
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Between 1798 and 1913, they accounted for around 50% to 90% offederal income.
Many blame it for worsening the Great Depression, but the reality is more complicated.
But times have changed.
Over the past 70 years, tariffs have rarely contributed more than 2% of federal revenue.
Plus, around 70% of all products enter the U.S. duty-free.
Trumps Current Tariff Plans: Whats Happening Now?
And he kept his promise.
Heres a quick rundown of whats happening.
How Will Tariffs Affect Your Daily Life?
Heres how they could affect your daily life and your wallet.
Imposing hefty tariffs on these countries means U.S. companies will have to pay more for imported materials and goods.
Stock Market Volatility
Whenever theres a major structural shift in the economy, uncertainty follows.
However, it bounced back after President Trump announced the 90-day pause.
This can affect farmers, manufacturers and companies that export their products.
Is Your Paycheck Not Going As Far As It Used To?
We get it.Everythingis more expensive than it used to be, but your paycheck hasnt kept up.
When money is tight,these resourceswill help nearly everyone.
Pros and Cons of Tariffs
They do have their drawbacks, but they also have benefits.
Here are the pros and cons of these trade barriers.
Beef up your emergency fund andstart a side hustleto prepare for higher costs and potential economic turbulence.
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