Trump’s tariffs have made waves since the 2025 inauguration, because of his campaign promise to be tough on other countries. Like him or not, the United States has been getting ripped off on trade for many years, especially by China.
This article will explain what tariffs are, outline the current tariffs that the Trump administration has put in place, and lay out the conservative argument for why Trump’s tariffs are great for America.
In This Argument…
- What a tariff is and why they are typically used
- The most significant tariffs President Trump’s Administration has instated, and why Trump is using these tariffs
- The legal issues that the President is now facing related to the tariffs
Table of Contents
What Are Tariffs?
A tariff is a tax on imported goods from foreign countries. They’re generally used as a source of revenue for the government, to protect domestic products and industries, encourage investment, and as a negotiation tool. They can also be used as a form of national security.
A tariff is not a core American value, and many other countries have tariffs on the United States. Combating foreign tariffs is one of the main focuses of the Trump administration.
But why does this matter? Does the United States really need tariffs?
Does the United States Need Tariffs?
The United States has for a long time been treated unfairly by global tariff systems and foreign nations now own $26 trillion more in U.S. assets than the U.S. itself owns. Furthermore, from 1789 until the modern income tax began in 1913, the United States relied heavily on tariffs that often ran 40-60 percent, a period that coincided with rapid growth and world-leading per-capita GDP (economic historians debate the effect of high tariffs).
There are several reasons why President Trump supports the use of tariffs:
- As a Source of Revenue: Tariffs by nature make money. Tariffs provide the U.S. government with another source of revenue. Tariffs generate customs revenue, though part of that cost is borne by U.S. consumers and businesses.
- To Protect Domestic Products and Industries: Tariffs can ensure that American manufacturers and workers are protected from unfair competition.
- Encourage Investment: Tariffs make the U.S. market more attractive and encourage companies to invest in American manufacturing and jobs for no tariffs.
- As a Negotiation Tool: Trump can use and has used tariffs for deal making with other countries.
- A Form of National Security: Tariffs can reduce reliance on foreign imports and increase national security. If a war with China breaks out, what’s stopping China from blocking key imports to the U.S?
- To Combat China’s Unfair Practices: Trump accused China of creating “unfair rules” and “filthy pollution havens.” He cited the U.S. Trade Representative’s Foreign Trade Barriers report.
Current Tariffs by the Trump Administration
April 2nd is called “Liberation Day” by the President and many of his followers. On that day, Trump announced that “reciprocal tariffs” would be imposed, which are tariffs on imports that reflect the total trade barriers (tariffs + non-tariff + “cheating”) of the exporting country, with a 10% baseline tariff on all imports.
In the next week, a number of strategic trade decisions were made, most notably with China. You can learn more about them here.
Here are the current tariffs imposed by the Trump Administration.
- 🌎10% baseline tariffs; higher reciprocal tariffs for targeted countries
- 🇨🇳 30% Ad Valorem Rate on China with a temporary 90-day window (subject to renewal or renegotiation)
- 20% fentanyl-related tariff imposed by Trump in early 2025 under IEEPA
- 10% reciprocal tariff imposed in April 2025
- 50% for steel and aluminum under increased Section 232 tariffs
- 🇨🇦 25% on general goods and 10% on energy-linked goods from Canada
- 25% on CA$30 b goods (Phase 1) for U.S. imports into Canada
- 10-25% for steel and aluminum
- Exemption for automobiles and automobile parts subject to Section 232 tariffs
- USMCA‑compliant goods are mostly exempt
- 🇲🇽 25% general goods from Mexico
- Exemption for automobiles and automobile parts subject to Section 232 tariffs
- 25% for steel and aluminum
- USMCA‑compliant goods are mostly exempt
- Anti-dumping duties of about 21% have been reinstated to protect U.S. tomato growers
- 🇬🇧 10% baseline reciprocal tariff for UK
- 25% for steel and aluminum until July 9 2025, when the rate automatically rises to 50% unless a separate agreement is reached
- 10% on the first 100,000 UK-made cars per year under the May 2025 quota deal; vehicles above that cap face 25%
- 🇪🇺 10% baseline reciprocal tariff for general goods on the EU
- 50% for steel and aluminum
- 25% for passenger vehicles
While there are many more tariffs imposed by President Trump’s administration on other countries, these are the most popular ones. You can read a detailed list of the current tariffs, according to Reed Smith, by clicking here.
The phrase “Ad Valorem” simply means “according to value.” It’s a Latin phrase, and it refers tariffs that are calculated as a percentage of the value of a good or service, instead of just as a fixed amount.
Current Legal Issues
On May 28, 2025, a three-judge panel at the U.S. Court of International Trade (CIT) ruling unanimously that Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on China, Canada, Mexico, and dozens of other countries.
This excludes tariffs imposed under Section 232, which are for national security.
The next day on May 29th, 2025, the Federal Circuit granted a stay, temporarily reinstating these tariffs while the Trump Administration’s court appeal continue. Appeals could go all the way to the Supreme Court and alternatives legal routes remain available to the Trump Administration.
The Bottom Line
- A tariff is a tax on imported goods from foreign countries.
- The Trump Administration is using tariffs for many reasons, but mainly as a source of revenue, to encourage investment, as a negotiation tool, and for national security.
- The tariffs set by President Trump have been under legal scrutiny, and a process of appeal has been made which could go all the way to the Supreme Court.