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What are tariffs and how do they work? [Video]

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Canadian Economy and Markets

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 can move among the United States, Mexico and Canada tariff-free because of Trump’s US-Mexico-Canada trade agreement. Mainstream economists are generally skeptical of tariffs.

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