NEWS · B2 Level - Part 4

What are tariffs and why is Trump using them

We start today with the highly anticipated tariffs announcements by US President Trump that will have a global impact.

Level: B2 · 45 sentences

Transcript

  1. We start today with the highly anticipated tariffs announcements by US President Trump
  2. that will have a global impact.
  3. Tariffs, it's a word we've been hearing a lot of lately.
  4. Some elected officials in Washington say tariffs protect American jobs
  5. while others warn they could raise prices.
  6. A tariff is a tax on imported goods.
  7. Let's say those new shoes you want or maybe that car your family's been eyeing is sold by a US company but...
  8. the kicks or car aren't actually made in the US.
  9. Even though you may see an American brand name,
  10. it might be manufactured or have parts that are manufactured by a company overseas.
  11. That means the US company needs to import those goods or parts.
  12. And if the US government imposes tariffs, then the company has to pay more for the import, so...
  13. Are they going to cover those extra costs out of the kindness of their hearts and keep the price the same or...
  14. are they going to raise the purchase price and make all of us, the consumers, cover the higher costs?
  15. When a country places tariffs on products from other nations, it almost always makes those goods more expensive,
  16. encouraging people to buy from local businesses instead.
  17. President Donald Trump has been a big supporter of tariffs, arguing they protect American workers
  18. and bring back manufacturing jobs and reduce reliance on other countries.
  19. The president says that if foreign goods become pricier,
  20. people will turn to US-made products,
  21. boosting the economy and keeping jobs at home.
  22. He also says tariffs will reduce the trade federal deficit and even solve the rising child care costs.
  23. Tariffs work by making imports more expensive, right?
  24. Which can shield domestic manufacturers from foreign competition.
  25. They can also be used as a tool to penalize other countries for unfair trade practices.
  26. President Trump says tariffs are paid by other countries and that...
  27. for far too long they took advantage of American businesses.
  28. But not everyone sees it that way.
  29. Many others, namely Democrats, argue that tariffs do more harm than good.
  30. They say when companies have to pay extra to import materials or products,
  31. they often pass those higher costs on to the consumers. And that means those everyday items like the cars, clothes, electronics
  32. will probably get more expensive.
  33. There's also the risk of a trade war.
  34. If the US raises tariffs on another country's goods,
  35. that country might retaliate by making American products more expensive for their own people.
  36. Which could hurt US businesses that rely on selling overseas.
  37. Beyond that, tariffs can disrupt supply chains.
  38. Many products are made with parts from all over the world, so...
  39. if it suddenly becomes more expensive to get those parts,
  40. businesses might struggle to keep up with demand.
  41. So are tariffs a smart way to protect American jobs or not?
  42. That's the debate.
  43. As you can imagine, as is almost always the case in politics,
  44. there are many who are in favor of these new announcements.
  45. But there are also many who are very against them.