Tariffs and Trade

What is a Tariff?

A tariff is, simply put, a tax on goods purchased from a foreign country. Tariffs can be imposed as a percentage of the value of the good, or as a flat rate added to the price of that good.

Historically, countries have used tariffs to do three things:

• Generating revenue to fund government functions
• Encouraging more spending on domestic goods
• Retaliating against other countries for their trade practices

In the second half of the 20th century, the use of tariffs declined as countries negotiated bilateral and multilateral reductions and free trade agreements. They returned during President Donald Trump’s first term. Trump levied new tariffs on thousands of products from China, ranging from medical devices and televisions to electric vehicles and aircraft components. President Joe Biden maintained and, in some cases, expanded on those tariffs.

Tariffs have exploded since Trump took office again in January 2025. As of April 10, Trump has levied a 10% tariff on import goods from all countries, and a 145% tariff on Chinese imports, with plans to boost rates again in early July. In response, China, Mexico, Canada, the European Union and other countries have threatened or instituted their own tariffs on U.S. goods

As the tariff situation continues developing, Poole College experts analyze their effects in Poole Thought Leadership articles and for local, state and national media outlets.

Tariffs, Shipping and Shortages

As shipments of Chinese imports slow down, Rob Handfield analyzes the impacts for U.S. consumers and companies.

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insight from Our Tariff Experts

“Impending domestic price hikes are going to be swift and large. The effective rate will likely surpass 25% because of how interdependent global supply chains are.”

Andrew Greenland
Assistant Professor
Economics

“U.S. companies face a decision—to either raise prices by the amount of the tariff or keep prices relatively the same and lower their margins.”

Carly Burd
Assistant Professor
Finance and Accounting

“The effects of these tariffs will surely cause prices to rise for U.S. consumers. I am more concerned about supply chains shutting down due to disruptions in product flows.”

Rob Handfield
Bank of America University Distinguished Professor
Supply Chain Managment

Tariffs and supply chains

Managing Massive Change During a Global Trade War

Confidence, clarity and adaptability are keys for corporate executives, managers and teams, Brad Kirkman says.

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More Poole analysis

May 23, 2025

Managing Massive Change As Tariffs Shift

Poole College scholar Brad Kirkman outlines four qualities for resilient teams, leaders and organizations.

May 02, 2025

Tariffs, Shipping and Shortages

What does a slowdown in Chinese imports mean for U.S. consumers and companies? Poole supply chain scholar Rob Handfield explains.

poole experts in the news

Andrew Greenland Explains U.S.-China Tariffs and Global Trade 

Poole professor Andrew Greenland discusses the implications of recent tariff developments for U.S.-China trade, domestic political pressures and the global economic order.

Andrew Greenland Explains the Economic Impact of U.S. Tariffs

Poole professor Andrew Greenland discusses the history of U.S. tariffs and their wide-ranging effects on global supply chains and the economy.

Poole Professor Says Tariffs Could Strain Holiday Supply

Poole Professor Rob Handfield says retailers are well-stocked for now, but tariffs could impact supply once inventories run low.

Rob Handfield on Tariffs and Consumer Spending Choices

Poole professor Rob Handfield discusses how tariffs may impact prices and how consumers navigating market uncertainty.

Poole Professor Highlights Tariff Impact and Tech Sector Confusion

Poole professor Rob Handfield discusses the growing uncertainty in the tech industry caused by shifting U.S. tariffs.

Richard Warr Weighs In On Market Volatility Amid Global Uncertainty

Poole College’s Richard Warr discusses recent market fluctuations and the impact of global uncertainty.