Why are people talking about tariffs?

The President of the United States has announced he will raise taxes, called tariffs, on goods coming from Canada, Mexico and China into the US.

This means that it'll be more expensive for people from those countries to do business in the United States (US).

President Trump has previously said he wants to raise tariffs in order to protect US jobs and industries.

He hopes that by increasing the price of products made abroad, it will encourage Americans to buy US-made goods instead.

Keep reading to find out more about tariffs and whether the UK could be affected by Mr Trump's plans.

What is a tariff?

Companies all over the world buy and sell things to one another.

This is known as trade - and it means globally countries can access all sorts of goods and services as well as creating stronger relationships with one another.

Goods and services can be imported and exported.

• Imports: This is when goods and services are brought in from other countries to be sold. For example, the UK imports bananas as they are a fruit that does not grow naturally in the UK.

• Exports: This is when goods and services are sent to other countries to be sold. For example, lots of cars are made in the UK which are then sent to other countries to be sold.

A government can decide to charge taxes on imports or exports to or from their country - this is known as a tariff.

The money that is raised from a tariff may then be used by that government to fund other things for their citizens.

Tariffs are a common tax in trade, used by many different governments.

What has been announced?

China, Mexico and Canada are some of the US's biggest trading partners.

The three countries made up more than 40% of imports into the US last year.

President Trump has announced tariffs of 25% on goods coming from Canada and Mexico will be introduced this week.

As an example of what this could mean, a 25% tariff on an item worth $100 means a company from Canada or Mexico would have to pay $25 to have the item sold in the United States.

President Trump has said he will also place a10% tariff on all goods imported from China.

Mr Trump first brought up the idea during his 2024 presidential election campaign.

He argues that introducing these taxes will allow for a boost in US manufacturing.

Mr Trump hopes that they will grow the US economy, protect jobs and raise the amount of money the US receives from tax.

What has the response been?

In response to Mr Trump's announcement, Canada's Prime Minister Justin Trudeau declared they will also put 25% tariffs on goods coming to Canada from the US.

He added that his country "did not want this."

Mr Trudeau said: "Many among us will be affected by this, and we will have some hard times.

"Now is the time to choose products made right here in Canada," he added on social media.

Mexico's President Claudia Sheinbaum said that her country was also preparing a plan for similar tariffs on US goods.

In a statement, China's foreign ministry said it "opposes this move" of tariffs on its products and will "take necessary countermeasures" - although China has not announced yet what they will be.

Why does President Trump want tariffs?

Mr Trump has said that one of his biggest priorities as president is to improve the economy, to help people deal with the rising cost of living and feel like they have more money in their pockets.

He aims to do this by bringing in a number of cuts to the amount of tax people in the US pay.

He also says he wants to protect US industry, boost businesses in the country and encourage Americans to buy US-made goods.

The BBC's Economics editor Faisal Islam explained that Mr Trump wants to change the global business economic map, and cut the amount of products that the US buys from China and Europe, "which he views as 'ripping off' America".

Some experts also argue that his promise to put in higher tax on imports from abroad could push prices up, though Donald Trump denies US citizens will pay more.

He has also promised to try to get companies to make more things in the US and create jobs there.

Will Trump's tariffs affect the UK?

Talking to the BBC on Monday, Mr Trump said the UK was "out of line" - suggesting he is thinking of putting tariffs on UK imports to the US.

But he added the situation "can be worked out", saying Prime Minister Keir Starmer had been "very nice" to him on the phone.

Mr Trump said it was more likely that he would put tariffs on imports on the European Union.

The UK's Business Secretary, Jonathan Reynolds, has said that he thinks the UK won't be targeted because the US currently sells more products to the UK than the country buys from the UK.