What Are Tariffs and Why Does Trump Love Them?
Do you have a favorite word? If you do, it's probably not the same as Donald Trump's.
The US presidential candidate has said that his favorite word is: "tariff."
He recently called it "the most beautiful word in the dictionary."
It's probably not the sound of the word that Trump likes, but what it means. When he thinks of tariffs, he sees dollar signs and wealth for Americans.
This is how he described his vision: "You see these empty, old, beautiful steel mills and factories that are empty and falling down."
He said: "We're going to bring the companies back." He added: "We're going to protect those companies with strong tariffs."
Trump sees tariffs as a vote-winner, but what exactly are they — and would they work?
Tariffs are a tax on imports. They are typically charged as a percentage of the price a buyer pays a foreign seller.
The US has tariff-free trade agreements with some countries, including Mexico and Canada, but Trump has said he wants to increase tariffs for companies that have moved their business out of the US.
Trump insists that tariffs are paid for by foreign countries. His idea is that by raising the price of imports, tariffs can protect home-grown manufacturers.
In fact, it is importers — American companies — that pay tariffs, and the money goes to the US Treasury.
Economists generally feel that tariffs raise costs for companies that rely on imports — and these costs are passed on to customers.
And if the US increases tariffs on Chinese products, for example, China is likely to do the same in return, which would hurt US companies that export their goods.
So they may not be "beautiful" after all, but Trump has been quick to present them as the answer, and that may be enough to encourage some voters to put a tick in the Republican box when election day arrives.
