(NewsNation) — President Donald Trump is pursuing done connected his run committedness to enforce tariffs connected America's top trading partners — a determination that could travel astatine a precocious outgo to U.S. consumers.

Trump said Friday helium would spot a 25% tariff connected imports from Canada and Mexico, arsenic good arsenic a 10% additional tariff connected each imports from China. Energy resources from Canada volition person a lower, 10% tariff.

The president wrote connected Truth Social that the tariffs are meant to extremity "the decades agelong RIPOFF OF AMERICA" with respect to "TRADE, CRIME, AND POISONOUS DRUGS."

The tariffs against Mexico person since been paused aft Trump said helium struck a woody with President Claudia Sheinbaum to proviso 10,000 Mexican soldiers to the U.S.-Mexico border.

Nevertheless, Trump has acknowledged American consumers could carnivore immoderate of the outgo from the tariffs.

"We whitethorn person short-term, a small pain, and radical recognize that," Trump told reporters connected Sunday.

Here's what to cognize astir tariffs and however they could interaction your wallet:

What are tariffs, and however bash they work?

Tariffs are taxes connected goods imported from different countries. They are typically charged arsenic a percent of the terms a purchaser pays a overseas seller.

So, a 25% tariff connected a $4 bully shipped from Canada oregon Mexico would look an further $1 charge.

When companies import goods from abroad, they wage the tariffs to the U.S. government. However, economists warn those costs yet get passed connected to American consumers done higher prices.

Who pays for tariffs?

Companies — importers — wage tariffs connected goods from abroad, and the wealth goes to the U.S. Treasury. If that sounds counterproductive, galore economists reason that it is.

When companies look higher costs, consumers usually extremity up footing the bill.

For example, Trump imposed a tariff connected imports of washing machines successful 2018. Researchers estimate the terms of washing machines accrued by astir 12%, astir $86 per unit.

The Budget Lab astatine Yale University estimates Trump’s tariffs would outgo the mean American household $1,000 to $1,200 successful yearly purchasing power.

Even Trump has acknowledged Americans could consciousness "some pain" from the emerging commercialized war.

"WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!)," Trump wrote connected Truth Social. "WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID."

While companies wage tariffs, they tin so wounded overseas countries by making their products pricier and harder to merchantability abroad. Foreign companies could chopped prices to offset the tariffs to support their marketplace stock successful the U.S.

Why does Trump privation tariffs?

Trump argues tariffs are a mode for the U.S. to onslaught backmost against overseas countries helium sees arsenic ripping disconnected America successful presumption of "TRADE, CRIME AND POISONOUS DRUGS."

The president defended his tariffs connected Canada successful a social media post connected Sunday: "We wage hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is nary reason. We don’t request thing they have. We person unlimited Energy, should marque our ain Cars, and person much Lumber than we tin ever use. Without this monolithic subsidy, Canada ceases to beryllium arsenic a viable Country. Harsh but true!"

Trump went connected to accidental Canada should go our "Cherished 51st State."

Canada is the largest root of U.S. vigor imports, and, past year, 60% of U.S. crude lipid imports came from America's bluish neighbor, according to the U.S. Energy Information Administration.

Previously, Trump said the tariffs against Canada and Mexico would stay until the countries ace down connected the travel of drugs and "illegal aliens" coming into the U.S.

He said the additional tariff connected China volition enactment until the state stops drugs, peculiarly fentanyl, from coming to the U.S.

What interaction bash tariffs person connected the economy?

The effects of tariffs person agelong been debated, but economists connected some sides of the aisle mostly hold the costs thin to outweigh the benefits.

Americans could spot higher prices connected a range of goods the U.S. imports from its apical 3 trading partners, including vehicles, fruits and vegetables, smartphones, toys, laptops and adjacent substance astatine the pump.

Tariffs tin besides pb to retaliation, with overseas countries responding by slapping their ain taxes connected goods from the U.S. After Trump's announcement, Canada instantly ordered retaliatory tariffs connected American goods.

Those who enactment tariffs often reason they forestall American businesses from offshoring jobs, but it’s not that simple.

Workers who nutrient the circumstantial goods covered by tariffs often benefit, but tariffs tin besides wounded workers successful different industries that trust connected those imports.

In different words, a authorities tariff whitethorn beryllium trading jobs successful 1 manufacture astatine the disbursal of jobs successful another.

A 2024 paper by a radical of apical economists looked astatine Trump’s 2018 tariffs and recovered that “import tariffs connected overseas goods neither raised nor lowered U.S. employment successful newly-protected sectors.” However, retaliatory tariffs had “clear antagonistic impacts,” chiefly successful agriculture.

The Associated Press contributed to this report.