What tariffs has Trump just dropped and why?

What’s Happening

Real talk: Trump’s volatile trade policy has thrown the world economy into chaos, and put some US prices up.

What tariffs has Trump just dropped and why? 2 hours ago Save Jennifer Clarke BBC News Save US President Donald Trump has introduced tariffs on goods reaching it from countries around the world. (we’re not making this up)

Trump argues that the move will boost American manufacturing and create jobs, but haters warn of higher prices and damage to the global economy.

The Details

But he has also used the taxes to make other demands, and has threatened tariffs on eight countries - including the UK - opposed to his proposed takeover of Greenland. The US Supreme Court is set to rule shortly on whether some of the tariffs are illegal.

What are tariffs and how do they work? Tariffs are taxes on imported goods.

Why This Matters

Typically, the charge is a percentage of a goods value. For example, a 10% tariff on a $10 product would mean a $1 tax on top - taking the total cost to $11 (£8. The tax is paid to the government in the foreign products.

Market watchers are paying close attention to developments like this.

Key Takeaways

These firms may pass some or all of the extra cost on to their users, which in this case means ordinary Americans and other US businesses.
They may also decide to import fewer goods.
Trump says tariffs increase the amount of tax raised , encourage people to buy more American-made goods and boost investment in the US.
He wants to reduce the US trade deficit - the gap between the value of goods it buys from other countries and those it sells to them.