Tariffs are taxes paid by importers, typically passed through to consumer prices. After decades of declining U.S. tariffs under WTO/NAFTA frameworks, both the Trump and Biden administrations significantly raised tariffs on Chinese goods, steel, aluminum, EVs, semiconductors, and other categories.
Defenders argue tariffs protect strategic industries (semiconductors, steel), counter unfair trade practices (subsidies, IP theft), and rebuild manufacturing capacity. Critics argue they raise consumer prices, invite retaliation, and protect inefficient industries.
Empirical work on the 2018-2024 China tariffs finds most of the cost was borne by U.S. importers and consumers, not Chinese exporters; effects on U.S. manufacturing employment were modest and mixed.