Trump’s Tariffs, Explained by a Curious Idiot (Me)

And why your favorite arctic animal now has to pay green money to the orange man

SMooTH

Posted on Apr 4, 2025

I can’t decide whether it’s a good morning or a bad one—because my entire timeline is screaming one word: tariffs.

Context

Before today, I barely knew what a tariff even was. My areas of expertise? Communication and marketing. I didn’t study macroeconomics, I’m not a finance bro. I write reviews of penguin games, for Christ's sake.

One thing I do love, however, is learning.

I like to understand stuff. And when the entire timeline is talking about something I don’t get, I feel stupid.

wow, 1200 tariff experts, amazing

Luckily, there is no shortage of tariff experts on Twitter, so I set out to learn more, and found this.

After half an hour of scrolling through hot takes and chaos, Ray Dalio’s post stood out as the most unbiased. The only catch? It wasn’t exactly beginner-friendly.

Another hour of deep-diving later, that changed.

Today, I’m breaking it down for you in plain English, with memes to help the economic pain go down easier. 😬

Wait, what’s the news?

On April 3, 2025, President Trump unveiled the "Liberation Day" tariffs, slapping a baseline 10% tax on almost every imported product coming into the U.S., plus hefty extra fees on countries he's labeled as "trade offenders," like a whopping 54% total tariff on Chinese goods and 46% on Vietnamese products.

Basically, he's saying, "Hey, you wanna sell stuff to America? Pay up."

💡

You can find the whole list of tariffs here.

But let's zoom out first—what exactly are tariffs?

WTF are tariffs?

Apparently, I’m not the only one unsure if it’s a good morning or not. Half of my timeline is cheering for the tariffs, the other half is muttering about economic doom.

If we’re gonna make up our own minds, we need to understand what a tariff actually is.

Simply put, a tariff is just a fancy word for a tax on goods imported from other countries. When China sends sneakers or electronics to the U.S., those products now cost significantly more because Uncle Sam is collecting extra fees.

They cost more? For who, exactly?

That’s where it gets spicy. 🌶️

Who’s paying them?

When a tariff hits, two groups pay the price:

Foreign producers: They're forced to pay extra to sell their goods abroad.

Domestic consumers: Prices go up because businesses pass the extra cost onto customers.

❔

Example:

Let’s say you bought a pair of sneakers made in China that used to cost you $120. With Trump now adding an extra 34% tariff on top of the existing 20%, they might now cost around $154.

Base cost: $100

Base + 20% tariff: $120

Base + 54% tariff: $154

While the Chinese producer might absorb some of the cost to stay competitive, U.S. consumers usually end up paying more—because most companies pass the pain straight to the buyer.

I’ve simplified it here, but in reality, how much each side pays depends on how sensitive they are to price changes (or “price elasticity” if you wanna sound fancy).

In short, this means that raising the tariffs is:

✅

Good for:

The U.S. government (they collect more tax revenue)

Domestic businesses (protected from cheaper foreign competition)

Politicians who want to look tough on trade.

❌

Bad for:

U.S. consumers (get ready to pay more for stuff)

Foreign exporters (they lose sales and profits)

Global trade relationships (tension and possible retaliation)

But the effects go way beyond higher prices

Raising tariffs doesn’t just make your next pair of sneakers more expensive—it kicks off a whole chain reaction. Here’s what else happens:

It hurts efficiency: Countries start producing locally even if it's pricier, making the global economy less efficient. Imagine Florida deciding it's going to grow its own coffee beans just to avoid tariffs from Brazil—expensive (setup, labor force, etc) and probably terrible coffee.

✅

Good for: Domestic producers temporarily shielded from competition.

❌

Bad for: Consumers and global efficiency.

It causes stagflation (inflation + slow growth): Tariffs make things more expensive (inflation) and slow economic growth. The exporting country, in our example China, faces lower demand (deflationary), while the importing country, the U.S., sees rising prices (inflationary). A lose-lose scenario.

✅

Good for: Almost nobody (maybe the government if they're collecting revenue)

❌

Bad for: Consumers and overall economic stability.

Definitely good for Trump, that’s for sure

It protects, but slows growth: American companies get protection from foreign competition, which helps them survive. But without pressure to compete, they risk getting lazy. Less innovation. Less improvement.

✅

Good for: Domestic companies (temporarily).

❌

Bad for: Innovation and consumers.

It builds resilience during global conflicts: By favoring local production, the country becomes less dependent on imports—especially important for essentials like medicine, food, or military supplies. In times of geopolitical tension, that’s a big deal.

✅

Good for: National security and domestic industries critical in emergencies.

❌

Bad for: International relations and trade partners.

Nothing safer than a McDonald’s job

It reduces global dependencies: Tariffs can shrink reliance on foreign goods and money, which is especially valuable during geopolitical conflicts or economic wars.

✅

Good for: National autonomy and security.

❌

Bad for: International cooperation and global market efficiency.

And it doesn’t stop there. Tariffs trigger reactions that ripple through the economy.

Countries might retaliate, sparking trade wars.

Currency values can shift, altering how much goods cost.

Central banks might adjust interest rates, impacting growth and inflation.

And governments could tweak spending or taxes, either easing or worsening the economic pain.

It's a complex dance—one move sets many others into motion.

Good or bad? The certainties.

Tariffs help some, hurt others, and the ripple effects are still unfolding.

✅ Good For:

U.S. Government: Collects more cash from tariff revenues.

Protected Domestic Businesses: Temporarily shielded from competition (but risk complacency).

Strategic Industries: Crucial in times of global tension or conflict.

❌ Bad For:

U.S. Consumers: Say hello to higher prices!

Export-Dependent Countries: Face economic downturns due to reduced demand.

Global Stability: Increased trade tensions, retaliation, and risk of trade wars.

Everything else—currency swings, interest rate shifts, government responses—is still to be determined.

Oh, and I forgot one.. my bad.

It’s also very good for memes.

The bottom line?

Trump’s tariffs are shaking things up—prices are rising, some U.S. industries feel safer (for now), and global trade is getting tense. But zooming out, this is just one chapter in a much bigger story.

The world’s economic system has some serious cracks—too much debt, lopsided trade, and capital flying all over the place. Sooner or later, something's gonna snap.

And the U.S. dollar? Still the star of the show, but it's starting to wobble under pressure. If trust in it drops, things could get messy fast.. but we’ll let the real economists figure that one out.

What does this mean for us regular folks?

Well.. higher prices, more uncertainty, and tighter belts—especially if you're not in the top income bracket. As usual, the folks with the least cushion will feel the biggest squeeze. 🤷‍♂️

But at least now you can go back to CT as a bona fide tariff expert, and it won’t even be a meme anymore.