In a carefully choreographed address from the White House Rose Garden, US president Donald Trump announced a massive package of trade tariffs. These include 20% on imports from the European Union, 24% on those from Japan, 27% for India, and 34% for China. The UK gets the lowest rate, at 10%.
A tariff is a tax on imports, paid by producers and consumers of the importing country.
US producers will pay more for their inputs – the things they need to produce their goods – from the rest of the world. US consumers will pay more for foreign products. But they will also pay more for US-made goods, because production costs will increase, and US producers will face higher demand from consumers seeking to substitute imports.
