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Transcript

So tariffs are something that president-elect Trump has talked about on the campaign trail and we have a hint of how he would carry them out based on when he was last president. So tariff is basically something like attacks on stuff that comes into our country and that can be like an import duty. It can be a tax on maybe slippers that come from China or lumber would that comes in from Canada, but basically when a company imports. Good from outside of the US, they have to pay a fee. And with the tariff that fee goes higher. And what these companies do is that they pass on this fee to consumers, which in turn increases prices. So tariffs are meant to do 2 big things. One is they're meant to help companies in the US by propping them up, by limiting competition from outside and it compelled people to buy American made goods. And the second thing is that Trump is trying to address what he thinks is unfair trade. Practices from other countries who are selling their goods at artificially cheap prices. So that's why he has this interest in pursuing tariffs.