Fact Check: "Donald Trump doesn’t understand his tariffs work."
What We Know
Tariffs are taxes imposed on imported goods, typically calculated as a percentage of the product's value. For instance, a 10% tariff on a $10 item would add $1 to the cost, making it $11 for consumers (BBC). President Donald Trump has implemented a series of tariffs during his administration, including a significant increase on steel and aluminum imports, which he doubled to 50% in June 2025 (BBC). Trump argues that these tariffs are intended to protect American jobs and manufacturing by encouraging consumers to buy domestically produced goods (BBC).
Despite his claims, critics argue that tariffs can lead to higher prices for consumers and retaliatory measures from other countries, which may harm the U.S. economy (American University). The International Monetary Fund (IMF) has warned that the tariffs could lead to a recession in the U.S. by 2025, indicating that the economic impact of these policies is complex and may not align with Trump's assertions (BBC).
Analysis
The claim that Trump "doesn't understand" how his tariffs work can be interpreted in various ways. On one hand, Trump has consistently articulated a rationale for his tariffs, suggesting he believes they will bolster the U.S. economy by curbing imports and promoting domestic production (American University). This indicates a level of understanding regarding the intended effects of tariffs.
However, the criticisms surrounding his tariffs highlight significant economic consequences that contradict his claims. For example, the tariffs have led to increased prices for consumers and have prompted retaliatory tariffs from trading partners, which can negatively impact U.S. exports (BBC). Furthermore, the IMF and other economic analysts have raised concerns about the potential for a recession due to these policies, suggesting that the broader economic implications may not have been fully considered by Trump (BBC).
The reliability of sources discussing Trump's tariffs varies. The BBC is a reputable news organization known for its comprehensive reporting, while American University provides academic perspectives that can offer deeper insights into the economic implications of tariffs (BBC, American University). However, some government fact sheets may present a biased view, emphasizing positive outcomes without addressing the criticisms (White House).
Conclusion
The verdict on the claim that "Donald Trump doesn’t understand his tariffs work" is Partially True. While Trump has a clear rationale for his tariff policies, the economic consequences and criticisms suggest that he may not fully grasp the broader implications of these tariffs on the U.S. economy and consumers. His understanding appears limited to the intended goals of protectionism, without adequately addressing the potential negative outcomes associated with such measures.
Sources
- What are tariffs, how do they work and why is Trump using them? - BBC
- Understanding Trump Tariffs 2.0 - American University
- Fact Sheet: President Donald J. Trump Increases Section 232 Tariffs on ...
- Fact Sheet: President Donald J. Trump Imposes Tariffs on ...
- Trump's tariffs explained
- Economist explains impact of Trump's tariff plans - USC Dornsife
- The Economic Effects of President Trump's Tariffs
- Explainer: How do tariffs work and how will they impact the ...