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In the newsletter this week...

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This week, everyone is talking about tariffs following President Trump's announcement of a series of tariffs as part of his so-called ‘Liberation Day’.

Tariffs at a glance


What is a tariff?
Import tariffs are a form of taxes charged on goods imported from other countries. 

Why do politicians use tariffs?
Raising tariffs can be a way of protecting domestic industries, as they make it more expensive to purchase goods manufactured abroad. This prevents local manufacturers from being undercut by imports. For example, in 2024 the EU decided to charge duties between 17% and 35.3% on Chinese-manufactured electric vehicles.

What is the impact of tariffs?
Companies importing goods can increase prices to cover the cost of tariffs. They may choose to absorb the costs themselves and take lower profits. Alternatively, it’s possible that foreign manufacturers exporting goods to the US could lower their prices, which would likely impact their profits. 

Our latest explainer goes into more detail about what tariffs mean, the context in which the current debate is being held and more…
 
Best wishes, 

Craig, Audience Engagement ManagerFull Fact
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