Tariffs are taxes.

And this week, just about everyone is talking about the T-word.

Using another executive order this past weekend, President Trump is levying new tariffs on all goods from China.

Tariffs are import taxes: an additional cost that American businesses will pay on the price of imported goods – and we import a lot of goods from China. From computers, cell phones, and other electronics to industrial equipment, appliances, and textiles, just to name a few.

In response, China is issuing its own retaliatory tariffs plus other trade measures meant to hit different sectors of the U.S. economy.

What this means in practical terms is that American families will pay more for cars, energy, and consumer goods like electronics.

After announcing tariffs on both Canada and Mexico earlier this week, they were put on a 30-day pause after days of speeches and phone calls on both sides, but not before causing havoc among consumers, businesses, and the stock market.

A back-and-forth trade war – either right now or in the near future – with friends, allies, or trading partners is a shortsighted play that almost all economists say can lead to lower GDP growth and higher inflation.

Even Trump himself admitted that the tariffs may cause some "pain" – and we agree. It will cause higher prices, lower productivity, lost jobs, and major economic disruption if the problem isn't fixed.

We don't know exactly how this is going to play out, and we're waiting anxiously to see.

We'll keep you updated.

Heidi

Heidi Heitkamp, Former U.S. Senator for North Dakota
Founder, One Country Project