Recent news has brought tariffs into the spotlight, prompting many to seek clarity on this economic concept. Tariffs are essentially taxes imposed on imports, collected by Customs and Border Protection agents at various ports of entry across the United States. These taxes are typically calculated as a percentage of the price paid by a buyer to a foreign seller.
The U.S. has varying tariff rates, with passenger cars facing a 2.5% tariff and golf shoes a 6% tariff. However, countries with trade agreements often enjoy lower or no tariffs. President Trump's tariffs on Canadian and Mexican goods, for instance, were a departure from the tariff-free status quo established by the U.S.-Mexico-Canada trade agreement.
