Tariffs are customs duties taken for some imports of goods or product category. The tariffs are designed to assist local producers to be more competitive on the market, providing price advantage compared to similar goods that can be imported. The tariffs are widely used as tools of protectionism, along with trade barriers and import amounts.

Although both tariffs and taxes generate government income to finance public goods and services, they have several distinctions. The tariffs are paid at the entrance port and the taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, and the tariffs are paid by importers.

There are two schools of thinking among economists regarding the operate of tariffs. While some say that tariffs are necessary to protect national industries and solve the problem of commercial imbalance, others perceive them as a harmful tool that can potentially augment prices in the long-term perspective and lead to a harmful trade war by encouraging Tit-For Tatt tariffs.

During the fall to the presidential election in November 2024, Donald Trump explained that he was going to operate the tariffs to support the US and American producers. In 2024, Mexico, China and Canada constituted 42% of total US imports. According to the American office of the population, Mexico was distinguished as the best exporter by $ 466.6 billion. That is why Trump wants to focus on these three nations by applying tariffs. It also plans to operate revenues generated by tariffs to reduce personal income taxes.