Trump’s proposed tariffs would raise costs

Donald Trump said last week that one of his first executive orders would impose a 25% tariff on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China. U.S. companies importing those products would pay the government tariff, or import tax. They would likely pass that cost on to their customers to avoid losing money, That would raise the prices of cars, cell phones, food and many other goods.

Class discussion: Do you think raising tariffs would be good or bad for the United States? Why? Could raising tariffs protect American jobs? Would nations subject to U.S. tariffs respond by taxing imports from the United States? Could that cost American jobs? Do you know how many of the products you use and the food you eat comes from another country? Do you know how many U.S. goods contain foreign parts? What essential materials only come from other nations?