President Trump has said he plans to install a blanket tariff of 10% to 20% on all imports, with additional tariffs of 60% to 100% on goods brought in from China.
In the September Presidential debate, Trump characterized the plan as a way to extract money from rival nations.
Economists, however, tend to agree that such a plan would would have the effect of raising prices on everyday goods.
How tariffs workSimply put, a tariff is a tax on imports, though not one paid by the exporting country.
Trump has floated the idea that a tariff policy could eventually replace U.S. federal income tax altogether, a convention that the nonpartisan Peterson Institute for International Economics called "literally impossible."
Persons:
Donald Trump, Trump, Howard Gleckman
Organizations:
Republican, Palm Beach Convention, U.S ., Urban, Brookings Tax Policy Center, CNBC, Tax Foundation, Peterson Institute for International
Locations:
Palm Beach, West Palm Beach , Florida, China, U.S