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What is a tariff and who pays it? [Video]

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Canadian National News

President Donald Trump fulfilled his promise to impose sweeping tariffs on America’s top three trading partners, Mexico, China and Canada.Collectively, these three countries shipped $1.4 trillion worth of goods to the United States last year, accounting for 40% of all the goods the U.S. imported, according to Commerce Department data.Effective immediately, all goods coming from Mexico and Canada, with the exemption of Canadian energy products, are subject to a 25% tariff. Goods coming from China are subject to a 20% tariff. As the countries vowed retaliatory tariffs on the U.S., Commerce Secretary Howard Lutnick said again Wednesday there may be some room for negotiation on the Mexican and Canadian tariffs.The tariffs, which Trump tied to stopping the flow of fentanyl into the U.S., threaten to significantly raise prices of goods at a time when the economy is already on shaky ground.Trump and members of his administration have often shrugged off …

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