In the past few weeks, President Donald Trump has begun imposing new tariffs on goods being imported. While many do not understand why these tariffs are taking place, the Trump administration has said it is a part of his overall plan to fulfill his 3 primary purposes which are : To raise revenue, to bring trade into balance and bring rival countries to heel.

Trump’s main reason for these tariffs is to stop the incoming flow of illegal immigrants and drugs from surrounding countries like Canada and Mexico. Trump is attempting to enforce these taxes on incoming goods and services in order to stop the producers  and weaken the economies of these countries. 

Last week Trump imposed a 10% tariff on China. The tariff went into action on Tuesday and China saw the cost of importation of goods increase resulting, in China placing tariffs on some of their goods like chips and metals in order to counteract what was done to them. With this retaliation from China, President Trump cut back the tariff and paused the act of taxing goods that were valued under 800 dollars. 

Along with this, the original idea of a 25% tariff against Canada and Mexico has also been paused until March 1  to allow the commerce department to develop a system to track the imported goods that will be taxed. 

Trump then announced a new plan to place a 25% tariff on all steel and aluminum items that would take effect Monday, Feb. 10. In Response to this, China has been running the Global Market by producing steel at very low prices which has led to insufficient production all over the world. 

With all of these tariffs going into place the prices on certain goods within the U.S. economy are expected to gradually increase over time unless Trump decides to change his trajectory on the conflict at hand.