Tariffs are government-imposed duties or taxes on imported and, in some cases, exported goods. Their primary purpose is to regulate international trade by making foreign products more expensive compared to domestic ones, thereby protecting local industries and generating revenue for the government. Tariffs can be specific, where a fixed fee is charged per unit of goods, or ad valorem, where the tax is based on a percentage of the goods’ value. These trade barriers can influence market prices, affect supply and demand, alter consumers’ purchasing behavior, and can be used as a tool in trade negotiations between countries. Tariffs can also impact diplomatic relations, as they may lead to trade disputes or retaliatory measures.
Major stock indexes ended the week lower due to inflation concerns and tariff threats. Dow and Nasdaq fell over 0.5%, with S&P 500 dropping nearly 0.25%. Initial investor optimism dimmed…