Here's what to know ahead of Trump's tariff announcement

President Donald Trump is set to announce a sweeping plan Wednesday to place tariffs on potentially trillions of dollars’ worth of goods imported into the United States.

President Donald Trump is set to announce a sweeping plan Wednesday to place tariffs on potentially trillions of dollars’ worth of goods imported into the United States.

While it’s still unclear how much the tariffs will be and how many countries and products will be affected, Trump has dubbed the move “Liberation Day” and claimed his expansive use of tariffs will revamp the U.S. economy by increasing domestic manufacturing and generating trillions of dollars in revenue for the federal government.

But economists, investors and business executives warn that Trump’s tariff ambitions risk raising U.S. prices, slowing economic growth and tipping the United States into a recession. Stocks have been falling in the run-up to the announcement, with major market indexes having their worst start to a year since 2022.

Here’s what you need to know about how tariffs work, who pays for them in the short and the long run and why they are even used in the first place.

Tariffs are fees U.S.-based companies pay the federal government when they import affected products into the United States. Since the money is collected by the government, it is considered a tax.

https://www.nbcnews.com/politics/economics/need-know-ahead-trumps-tariff-announcement-rcna198985

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