What are tariffs, how do they work and why is Trump using them?
Publlished 9 April 2025
US President Donald Trump's latest sweeping tariffs against America's trading partners have taken effect.
Goods imported from the 60 countries which he describes as the "worst offenders" are now subject to additional taxes ranging from 11% to 104% for Chinese products.
Trump claims tariffs will boost US manufacturing and protect jobs, but economists warn that the move could harm the world economy, and push up prices for consumers in the US and around the globe.
What are tariffs and how do they work?
Tariffs are taxes charged on goods bought from other countries.
Typically, they are a percentage of a product's value. For example, a 25% tariff on a $10 (£7.59) product would mean an additional $2.50 (£1.90) charge.
The 104% tariff on Chinese goods means that a $10 product would attract a $10.40 tax on top.
The companies that bring the foreign goods into the country have to pay the tax to the government.
The money is collected when the imported goods clear US customs.
Why is Trump using tariffs?
For decades, Trump has argued that the US should use tariffs to boost its economy.
He says they will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment in the country.
Trump wants to reduce the gap between the value of goods the US buys from other countries and the value of those it sells to them. He argues that America has been taken advantage of by "cheaters" and "pillaged" by foreigners.
The US president has also made other demands alongside tariffs. The first announced during his current term targeted China, Mexico and Canada, after he said he wanted them to do more to stop migrants and illegal drugs reaching the US.
Trump has strongly defended his tariff policy but a growing number of influential voices within his Republican Party have joined opposing Democrats and foreign leaders in attacking the measures.
Long-standing Trump ally and Daily Wire co-founder Ben Shapiro said they could be economically catastrophic, and that the messaging behind them was muddled.