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How tariffs work

Lara Ibasco

Created on February 12, 2025

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Transcript

HOW DO TARIFFS WORK?

What is a tariff?

IT IS A TAX ON FOREIGN GOODS AND SERVICES. TODAY, THEY ARE USED TO PROTECT CERTAIN INDUSTRIES AND BARGAINING POWER. IT IS COMMONLY USED FOR REGULATING INTERNATIONAL TRADE.

SOURCE: CONGRESSIONAL RESEARCH SERVICE