Trade tariffs are taxes imposed by a government on imported or exported goods. They are designed to make imported goods more expensive, thereby protecting domestic industries from foreign competition. By increasing the cost of foreign products, tariffs encourage consumers to buy domestic goods instead. Tariffs can be used to generate revenue for the government, influence trade balances, and respond to unfair trade practices from other countries. They can be specific (a fixed fee per unit) or ad valorem (a percentage of the value of the goods). Trade tariffs can also lead to trade disputes and retaliatory measures from other countries, impacting international trade relationships.
French President Emmanuel Macron has declared that Europe will impose reciprocal tariffs in response to the U.S.'s proposed 25% tariff on European steel and aluminum. The move by Europe comes…