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What are tariffs and how do they work?

The article from Local 10 News, published on January 27, 2025, explains tariffs as taxes imposed by a government on goods and services imported from other countries. Tariffs serve multiple purposes: they protect domestic industries by making imported goods more expensive, thereby encouraging consumers to buy local products; they generate revenue for the government; and they can be used as a tool in trade negotiations or to retaliate against trade practices deemed unfair by other nations. The article outlines how tariffs work by increasing the cost of imported items, which can lead to higher prices for consumers, potential trade wars, and shifts in economic dynamics. It also discusses the different types of tariffs, such as ad valorem (based on the value of goods), specific (a fixed fee per unit), and compound (a combination of both). Additionally, the piece touches on the broader economic implications, including impacts on inflation, employment, and international relations.

Read the Full WPLG Article at:
[ https://www.local10.com/news/politics/2025/01/27/what-are-tariffs-and-how-do-they-work/ ]