Part 4/10:
Tariffs, essentially taxes on imports, raise the cost of foreign products for American businesses. For instance, a 25% tariff on Mexican avocados compels companies like Walmart to absorb the extra costs, which they inevitably pass on to American consumers. While designed to fix the U.S. trade deficit — a concept where imports exceed exports leading to economic vulnerabilities—such tariffs risk inflating prices. This rate of inflation could sour public sentiment against the administration since it increases the cost of living for everyday Americans.