President Trump has stated his intention to place import tariffs on all goods made outside of the United States, supporting his America First initiative. He wants to galvanize the nation's manufacturing industry, which is a boon to factory workers. However, tariffs may stimulate inflation as importers pass the additional expenses onto the customer.
It’s believed that tariffs increase prices and decrease trade. Tariffs are paid by the importers, making it more expensive to buy foreign products, thereby directing business to domestic producers, at least in theory. The problem is that the importers may pass some or all of the costs of new tariffs to consumers.
