Everything you need to know about Trump’s tariffs but were afraid to ask

President Donald Trump is set to impose his tariffs over the weekend, gambling that taxing American companies for imported goods will ultimately punish the countries that make stuff Americans want – and bring those nations to the negotiating table. But it’s a risky bet that could easily backfire on American consumers and the economy.

President Donald Trump is set to impose his tariffs over the weekend, gambling that taxing American companies for imported goods will ultimately punish the countries that make stuff Americans want – and bring those nations to the negotiating table. But it’s a risky bet that could easily backfire on American consumers and the economy. In the United States, tariffs typically serve a limited but important purpose: They are intended to grow America’s economy by incentivizing the purchase of made-in-the-USA goods. They accomplish that by effectively penalizing American companies that buy foreign goods with high taxes. Economists largely believe that, in limited circumstances, tariffs can be effective tools for economic growth. But Trump believes that tariffs have an altogether different purpose. Trump has long praised tariffs as effective economic policy. On Monday, Trump called “tariff” the fourth-most beautiful word in the dictionary, behind “God,” “love” and “religion.” And Trump has repeatedly (and incorrectly) said that “the tariff sheriff,” former President William McKinley, ushered in an era of American prosperity at the end of the 19th century by going all-in on tariffs. Though the economy was growing strong in the 1890s, that was largely on the back of practically unrestricted immigration, among other factors. Still, Trump has used and promised to employ tariffs for three primary purposes: to raise revenue, to bring trade into balance and to bring rival countries to the negotiating table.