Recent conversations surrounding American tariffs and trade wars have caused an uproar. The conversation began when Trump campaigned with the loose idea of imposing tariffs on other countries. He said this would cause a ripple effect which would make consumers gravitate towards U.S.-owned brands, ultimately, creating a self-sufficient economy.

When Trump took office, he followed through on his campaign promises and signed an executive order to impose tariffs on China, Mexico and Canada.

For those who need a refresher – tariffs are taxes on imported goods. Governments impose tariffs to raise revenue and protect domestic industries. However, tariffs often result in economic inflation. This is as businesses buying tariff-laden goods pass the costs on to consumers to maintain profits.

In theory, this may sound effective; however, price gouging and economic disparity could leave U.S. citizens with less money.

With tariffs in mind, American businesses may halt production to adjust to supply and demand. Then, after making these adjustments, many American companies are expected to undergo major layoffs. The creation of a “self-sufficient” economy brings along new incentives for companies.

Another promise Trump campaigned with was lowering grocery prices. Prior to the election Trump stated he was going to lower grocery prices on day one. Rather than doing that, he has  threatened to begin a trade war, even though American consumers are reliant on trade. For instance, America gets half of its produce from Mexico, one of the countries Trump has threatened.

Trump’s tariffs are not the only concern for Americans. Other countries, like Canada and Mexico, are fighting back with their own tariffs. Faced with this disastrous outcome, Trump agreed to pause his tariffs for a month, provided Canada and Mexico send 10,000 troops to the border to help prevent illegal immigration and drug trafficking. However, tariffs on China were not rescinded.

So, what will happen next month?

Unfortunately, we do not know. Though, Trump has claimed that the situation on both sides of our border is not sustainable. Trump has also imposed a 25% tariff on all steel and aluminum. So, it seems likely that more tariffs are to come.