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Tariffs are essentially a tax imposed on imported goods, and these costs typically fall on consumers. President Trump expressed his hope that foreign car manufacturers would raise their prices, thereby promoting the sale of American-made vehicles. This statement underscores the dual goals of such tariffs: generating revenue for the government and encouraging domestic manufacturing.
Industries are set to face increased costs, which could lead to higher prices for consumers. The Federal Reserve has cautioned that this may result in temporary inflation, although the long-term effects remain to be seen. Ultimately, consumers will likely bear the brunt of these financial adjustments, whether through increased prices or reduced availability of imported goods.