What are tariffs and how do they work?

Tariffs are taxes charged on goods bought from other countries.

Typically, they are a percentage of a product’s value.

A10% tariff means a $10 product would have a $1 tax on top – taking the total cost to $11 (£8.35).

Companies that bring foreign goods into the US have to pay the tax to the government.

They may pass some or all of the extra cost on to customers. Firms may also decide to import fewer goods.

Why is Trump using tariffs?

Trump says tariffs will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment.

He wants to reduce the gap between the value of goods the US buys from other countries and those it sells to them. He argues that America has been taken advantage of by “cheaters” and “pillaged” by foreigners.

The US president has made other demands alongside tariffs.

When he announced the first tariffs of his current term against China, Mexico and Canada, he said he wanted them to do more to stop migrants and illegal drugs reaching the US.