Trump’s tariffs against the United States’ three largest trading partners, Canada, Mexico, and China are now in effect. These taxes levied on imported goods are not paid by the exporting country, but rather a cost that is passed on to the American consumer.

Trump’s tariffs could upend world trade and prompt domestic production. In recent months, plenty of business executives have said they were taking a wait-and-see approach to U.S. President Donald Trump ‘s broad threats of tariffs.