One of the key goals of President Trump’s import tariffs is to bolster the manufacturing sector in the United States. By levying import tariffs like the 25% on Canadian and Mexican goods and the additional 10% on China, imported products become more expensive as business flows to domestic products, in theory.
By making domestic products more competitive, Trump aims to encourage companies to produce in the United States. Critics argue that it would encourage domestic manufacturers to raise prices as they can squeeze out more margins, as U.S. steel makers did in 2018.
