U.S. President Donald Trump’s tariff policy developed further after he took office, with several proposed tariffs directed at countries including China, Canada and Mexico, though many were not implemented immediately.
A tariff is a tax imposed on specific categories of imports or exports. Tariffs affect currencies by making the U.S. dollar appear cheaper, which increases the cost of foreign goods. While tariffs are taxes on products entering the U.S. from other countries, foreign companies are not required to pay them directly.
Tristan Jackson, freshman theatre major, shared his thoughts on the newly issued tariffs.
“Who actually wants to spend extra money on their phones, clothes, or anything else? That could really disrupt trade and lead to some wild supply chain problems. It’s just another thing that makes life more complicated,” Jackson said.
The history of American tariffs dates back to the nation’s founding. One of the first laws passed by Congress, the Tariff Act of 1789, had two main goals: to regulate trade and generate revenue for the federal government. Alexander Hamilton strongly supported the law, believing it was essential to protect American factories from foreign competition and to foster industrial growth.
Although the law sparked some debate, it became a major source of federal revenue. By the early 1900s, the introduction of the income tax reduced the government’s reliance on tariffs. After World War II, the U.S. significantly lowered tariffs and led efforts to establish the General Agreement on Tariffs and Trade.
Tariffs have remained a tool used by U.S. presidents since the country’s founding.
“Tariffs are very powerful, both economically and in getting everything else you want,” President Trump told reporters at AP News.
The U.S. imposes tariffs as a policy tool intended to support domestic industries. Supporters of tariffs argue that they help create a level playing field when other countries, such as China, Canada and Mexico, offer goods at lower prices. The concept is sometimes compared to a school charging extra for outside snacks to encourage students to purchase items made within the school.
Sebastian Meleka, freshman mechanical engineering major, commented on the uncertainty surrounding the tariff decision.
“Isn’t the situation still up in the air? I get that no one wants prices to go crazy, but at the same time, I understand why we want to protect our businesses,” Meleka said.
Tariffs have the potential to raise prices for goods and services, which could affect consumer spending. Some economists have expressed concern that, under certain conditions, tariffs may contribute to broader economic challenges. Government officials continued to evaluate the proposed measures and engaged in discussions with China, Canada and Mexico to explore possible solutions.
