Explain Like I'm Five

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What exactly are tariffs and how do they work? (lazysoci.al)

submitted 2 weeks ago by [email protected] to c/[email protected]

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I have 0 maths or economy skills, so I do need it explained like I'm 5. They're in the news a lot atm but I just don't understand them

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[–] [email protected] 6 points 2 weeks ago (19 children)

Everything that is not purely American is going to be a lot more expensive.

[–] [email protected] 5 points 2 weeks ago (16 children)

But what is a tariff? What does it do?

[–] [email protected] -2 points 2 weeks ago (1 children)

A tariff is the price a foreign company has to pay to be allowed to sell their product in America. When the product normally costs $100 and the tariff is 20% then the company has to pay $20 to be allowed to sell their product. Those $20 go to the American government.

[–] [email protected] 4 points 2 weeks ago

The importer pays it, not the foreign company.

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