What are tariffs? Here's how they affect the economy and your wallet

The video explains tariffs as taxes on imports, highlighting their economic impact. It covers tariff policies under Trump and Biden, noting Biden's increase on Chinese goods. Historical tariffs, like the 1930 Smoot-Hawley Act, are discussed for their economic effects. The video examines market reactions to tariffs, their role in revenue, and potential consumer impacts, such as price increases. It concludes with a discussion on tariffs as tools for trade negotiations and their future implications.

What is a tariff primarily described as in the video?

• A subsidy for local businesses

• A tax on imported goods

• A discount on exports

• A fee for international travel

Which historical tariff act is mentioned as having raised tariffs to historically high levels?

• The Smoot-Hawley Tariff Act

• The Fordney-McCumber Tariff

• The Revenue Act

• The Tariff of Abominations

How did the Dow Jones Industrial Average react after the Smoot-Hawley Tariff Act was passed?

• It rose by 40%

• It remained stable

• It fell by 40%

• It rose by 10%

What is one potential effect of tariffs on consumer goods mentioned in the video?

• Increase in consumer demand

• Decrease in product quality

• Rise in product prices

• Increase in export volume

According to the video, what is one reason tariffs might be used beyond raising revenue?

• To decrease manufacturing costs

• To incentivize more manufacturing in the US

• To lower consumer prices

• To reduce government spending