Prices and jobs
Tariffs can shield domestic factories from import competition while raising costs for consumers and downstream manufacturers.
In plain English
A tax on goods crossing the border.
A tariff makes foreign goods more expensive at the border — importers pay it, and much of the cost typically flows to consumers.
Simple example
U.S. tariffs on steel, aluminum, and a broad range of Chinese goods have been central to trade policy fights since 2018.
Why it matters
What the term actually changes.
Trade conflict
Targeted countries usually retaliate with their own tariffs, hitting exporters like farmers and manufacturers.
How it works
The mechanics, in practice.
Collected at the border
Importers pay the tariff to customs when goods enter the country, as a percentage of value or a per-unit fee.
Pass-through
Companies absorb some cost and pass the rest to buyers; studies of recent rounds found most of the burden landed domestically.
Related guide
How do tariffs work as a tool of U.S. trade policy?
A look at who sets tariffs, how they function, and the competing arguments over making them a centerpiece of trade strategy.
Read the guide → Related issue brief
Should the U.S. use tariffs as a primary tool of trade policy?
As Washington leans more heavily on import duties, Americans are divided over whether tariffs should anchor U.S. trade strategy.
Read the brief →You’ve learned the term. Now vote.
Should the United States use tariffs as a primary tool of trade policy?
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