The reality: Economists overwhelmingly say that tariffs are the equivalent of a tax hike, with American consumers paying the price for more expensive goods.
The Peterson Institute for International Economics, a nonpartisan think tank, projected that if Trump were to enact a 20% across-the-board tariff along with a 60% tariff on China, it would cost a middle-income household roughly $2,600 a year. Senate Republican Leader Mitch McConnell said in September that he's "not a fan of tariffs" because "they raise the prices for American consumers."
Congress has the authority to enact tariffs, but in recent decades, it has delegated considerable power to presidents to impose tariffs without congressional approval if certain statutory conditions are met -- such as a threat to national security or harm to domestic industries, said Monica Morlacco, an assistant professor of economics at USC.
In 2018, the Trump administration imposed significant tariffs on thousands of products -- including washing machines, solar panels, steel and aluminum -- from various countries, notably China, Canada, Mexico, and countries within the European Union. Many affected countries responded with retaliatory tariffs on U.S. exports, sparking a costly trade war.