00:00Tariffs. Tariffs. Tariffs. Tariffs. Tariffs.
00:04We hear the word tariffs a lot, but what are they exactly?
00:07The simplest way to put it is just a tax on imports.
00:10If a good comes from another country and there's a tariff, it'll have a tax on it.
00:13It might be as low as 2%, it might be as high as 100%, but basically just think it's a tax.
00:24If a shoe producer, say if Nike has to pay more for their shoes from overseas,
00:29they're going to have to pass it on to someone and that's probably going to be you as a consumer
00:33because the business has got the same costs as before, but now they have this new expense
00:37in the form of a tariff and quite likely cause the price of goods to rise and cause inflation more broadly.
00:47While some are saying this is a short-term pain and need a long-term gain, the only way to really
00:53fix this under the current Trump policy prescription is to build more factories in America. The problem
00:58with that is it takes time. You can't simply stand up a legion of ball bearing and plastic making
01:04factories overnight. It's not that easy, it's not that cheap, which also I think underscores for a
01:09lot of people why free trade is a good thing. Countries that are specialized in producing a given
01:14good do that and export it and we will export what we are good at producing to them. If you're a consumer,
01:19free trade will make your goods cheaper and that's appealing for a lot of people.
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