By DANIELLE HERNANDEZ
Recently, a word that many Americans haven’t heard of has been repeated all over the media. That word is tariff. For those who don’t know, a tariff is a tax that is supposed to be paid on a particular class of imports and exports. Now, why is the conversation of tariffs being brought up so much? Here’s the answer.
New president-elect Donald J. Trump imposed these tariffs on countries such as Canada, Mexico, and China. Those countries are the United State’s biggest imports and he wants to raise the tariff percentage to increase protection for the U.S. Since most goods are from Canada and Mexico, he will be increasing the tariffs up 25% while 10% more for China.
Although this sounds like a great idea for the future and safety of Americans, this will backfire and affect the cost of goods. According to whitehouse.gov, the U.S. is known for having one of the most open markets in the world as well as the lowest average tariff rate but, it will change as these tariffs are being implemented. Goods such as steel and metal, groceries, cars, and gas prices will skyrocket as a result of these tariffs.
As American consumers, this will be a problem, especially to those who are in low income or middle class households. Since tariffs are solely based on American consumers, the economy will experience a couple of difficulties throughout the next few years due to the increased price of goods from tariffs to market shelves.
Elizabeth Bierling-Powers, a history and economics teacher at the high school, said that prices will increase on technology, especially, or even skincare products from our main trading partners. Since most of our technology relies on different metals then it will also affect the price of energy sources that are made of the goods.
Many news outlets have reported that China is currently holding onto exports due to the recent tariff plan. Mrs. Bierling-Powers believes that in order for the goods to be sent here, both Chinese and American leaders must negotiate a plan to send them out. It is unknown if they will be under the new tariffs or not since it is solely based on the consumer and supplier.
As the U.S. is currently experiencing this in its government, consumers must focus on necessity and the idea of buying now rather than later. Since the prices will go up, there is very limited control that consumers have, but what they can do is save and spend responsibly.
Now, the idea of this plan being long term or short term is based on executive orders and laws being passed. It can be passed or ruled out depending on government decisions. Who knows, the next president may or may not get rid of the tariff laws. The best people can do is advocate for whatever is right, save money, and follow the news.
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