Heres what tariffs are and how they work [Video]

WASHINGTON (AP) — Tariffs are in the news at the moment. But what are they? Tariffs are typically charged as a percentage of the price a buyer pays a foreign seller. In the United States, tariffs are collected by Customs and Border Protection agents at 328 ports of entry across the country. Tariffs can be lower for countries with which the United States has trade agreements. For example, most goods moved between the United States, Mexico and Canada tariff-free because of President Donald Trump’s US-Mexico-Canada trade agreement. On Tuesday, the U.S. began charging 25% tariffs on imports from Mexico and Canada and 20% on Chinese products. Mainstream economists are generally skeptical about tariffs.

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