In 2025, tariffs are back at the center of American politics—and they’re not just trade tools. As former President Donald Trump settles into his second term, he’s reintroducing a familiar economic strategy: imposing steep tariffs on foreign imports, particularly from countries he believes are undermining the United States’ economic and national security interests.
But what exactly are tariffs, how do they work, and why are they making headlines again?
Here’s a breakdown of how tariffs work and why they’ve become such a defining feature of Trump’s latest political agenda.
What are Tariffs?
At their core, tariffs are taxes imposed by a government on goods imported from other countries. The purpose is to make foreign products more expensive so that consumers are more encouraged to buy domestically made alternatives. For example, if a laptop from overseas costs $600, a 35% tariff could increase the price of $750, making an American-made model more attractive in comparison.
There are two main types of tariffs:
- AD VALOREUM TARRIFS, which are calculated as a percentage of the product’s value.
- SPECIFIC TARRIFS, which are fixed fees based on the quantity of goods.
While tariffs can be effective in boosting certain industries, they also risk triggering higher prices for consumers and retaliation from trade partners, something the United States is already experiencing in 2025.
The effectiveness of tariffs in bolstering the U.S. economy remains a contentious issue among economists and policymakers. While tariffs are designed to protect domestic industries from foreign competition, they can also lead to increased consumer prices and strained international relations.
Why Is Trump Imposing Tariffs in 2025?
President Trump has long championed tariffs as a way to assert U.S. economic strength. During his first term, his administration launched a series of high-profile trade disputes, most notably with China. With his second term, his administration has reintroduced and expanded tariffs with a broader set of goals.
In February 2025, Trump signed an executive order imposing a 25% tariff on nearly all imports from Mexico and Canada. The administration claimed this move was necessary to pressure both countries to take stronger action against illegal immigration and drug smuggling, specifically referencing the opioid crisis and the role of fentanyl trafficking across U.S. borders.
Furthermore, Trump’s renewed trade war with China has escalated quickly. Initially reimposing a 10% tariff on a wide range of Chinese goods, the administration recently announced plans to raise that rate to at least 104%. This move came after China increased tariffs on American goods from 34% to 84%, retaliating against Trump’s initial measures.
According to the administration, the heightened tariffs are designed to deal with what they describe as China’s unfair trade practices, including intellectual property theft, currency manipulation, and overproduction of steel and technology components that flood global markets.
The Political Strategy Behind the Tariffs
Trump’s 2025 tariff strategy isn’t only about economics, it’s also deeply political. His campaign and administration have used tariffs to appeal to working-class voters, particularly in manufacturing-heavy states like Ohio, Pennsylvania, and Michigan. The messaging is simple: “the U.S. should no longer rely on other countries for critical goods or tolerate trade deficits that disadvantage American businesses.”
However, critics argue that the economic pain from tariffs is often felt by the same consumers and small businesses they’re meant to protect. Higher prices at the grocery store, inflated costs for raw materials, and retaliatory tariffs that hurt U.S. farmers are just a few of the consequences.
The Road Ahead
As President Trump repositions tariffs as a cornerstone of his 2025 agenda, the U.S. finds itself navigating another period of economic uncertainty. Whether these policies will protect American jobs and boost domestic industries or lead to higher prices and deeper trade disputes, is still unfolding.
What’s clear is that tariffs are no longer just an economic issue. They are a true political weapon, a global signal, and a daily reality for Americans across the board.