A tariff is a tax on imports or exports between two countries. Main goal of tariffs is to regulate foreign trade and encourage or safeguard domestic industry. For example, a 10% tariff on imported cars would try to encourage U.S. buyers to buy American made cars as the government is making foreign cars more expensive. Real question is who pays the tariff on that German made BMW, or China made TV?
Answer: you the consumer, not the other countries! The U.S. Customs and Border Protection (CBP) imposes these tariffs on the company importing the items. The CBP typically requires importers to pay the duties within 10 days of their shipments clearing customs. Sticking with my examples this bill DOESN’T go to China or Germany, it is paid by the importer of the goods. These importers are then responsible to decide whether to pass along these higher costs, live with a lower margin, cut costs to offset higher tariffs, or a mix of these options. The easiest and most commonly used recourse for importers is to raise prices or pass the increased costs to the next party.
The real danger of these trade policies is other countries can counter, or retaliate, with their own tariffs- causing a decline in international trade that hurts everyone. The Smoot-Hawley Tariff Act, enacted in June 1930, negatively contributed to the Great Depression by many economists. Who knows where current policies go, but there is some past history which points out the negatives can outweigh the positives in a full-blown trade war when countries distort free trade.