US Tariffs: How Trade Taxes Affect the World

US Tariffs: How Trade Taxes Affect the World

US Tariffs: How Trade Taxes Affect the World

Vocabulary
Instruction: Repeat after your teacher.

Tariff (TA-rif) /ˈtærɪf/
Type: noun
Meaning: a tax on imported goods
Synonyms: tax, duty, fee
Example: The government added a tariff on steel.

Import (IM-port) /ˈɪmpɔːrt/
Type: noun / verb
Meaning: goods brought into a country
Synonyms: bring in, shipment
Example: The US imports cars from other countries.

Price (prays) /praɪs/
Type: noun
Meaning: the cost of something
Synonyms: cost, value, amount
Example: Tariffs can increase the price of food.

Article Reading
Instruction: Read aloud the article.

The United States uses tariffs to control some imports from other countries. A tariff is a tax added to goods when they enter the country. Governments use tariffs to protect local businesses or influence trade. When tariffs are added, the price of imported goods often goes up. This can affect everyday items such as food, clothes, or electronics. Companies may pay more to bring products into the country, and consumers may also pay higher prices. Tariffs do not only affect one country. Because trade connects many nations, changes in US tariffs can influence global markets and international relationships.

Comprehension Questions
Instruction: Read the sentence. Answer true or false. If false, give the correct information

TRUE OR FALSE
1. A tariff is a type of tax.
2. Tariffs only affect one country.
3. Trade connects countries.
4. Tariffs can raise prices.
5. Prices always go down with tariffs.

FILL IN THE BLANKS
Choices: tariff import price

1. A __________ is a tax added to goods from another country.
2. The government placed a __________ on foreign products.
3. When goods are an __________, they come from another country.
4.A higher __________ makes products more expensive.
5. Tariffs can increase the __________ of imported goods.
Speak Up
Instruction: Answer in one short sentence.

1. What is a tariff?
2. Why do countries trade?
3. How do higher prices affect families?
4. Should countries protect local businesses? Why?
5. Do tariffs affect daily life?
Vocabulary
Instruction: Repeat after your teacher.

Trade deficit (TRAYD DEF-uh-sit) /treɪd ˈdɛfɪsɪt/
Type: noun phrase
Meaning: when a country imports more than it exports
Synonyms: trade gap, imbalance
Example: The US has a trade deficit with some countries.
Task: Create a sentence about your country using this term.

Domestic industry (duh-MES-tik IN-duh-stree) /dəˈmɛstɪk ˈɪndəstri/
Type: noun phrase
Meaning: businesses inside a country
Synonyms: local business, national industry
Example: Tariffs protect the domestic industry.
Task: Use this phrase in a sentence about jobs.

Retaliation (ri-tal-ee-AY-shun) /rɪˌtæliˈeɪʃən/
Type: noun
Meaning: action taken in response to another action
Synonyms: response, counteraction
Example: Other countries may respond with retaliation.
Task: Explain retaliation using a trade example.

Article Reading
Instruction: Read aloud the article.

US tariffs have influenced global trade flows by making imports more expensive. Supporters say tariffs help protect domestic industries, while critics argue they increase costs for businesses and consumers. In response, some trading partners have introduced retaliation, placing their own tariffs on US goods. This back-and-forth can reduce trade volumes and slow economic activity on both sides. Economists warn that prolonged tariff disputes can harm the economy by raising prices, reducing exports, and creating uncertainty for businesses. As a result, markets closely watch trade policy decisions made by the US and other major economies.

Comprehension
Instruction: Answer the questions based on the article.

1. Why do tariffs raise import costs?
2.What is retaliation in trade?
3. How do tariffs affect consumers?
4. Why do markets watch trade policy?
5. How can tariffs slow the economy?
Speak Up
Instruction: Share your opinion and explain your answer.

1. Should countries protect domestic industries?
2. Are higher prices worth protecting local jobs?
3. How do tariffs affect global trade?
4. What happens when countries retaliate?
5. How do tariffs affect your country?
6. Should trade be free or controlled?
7. How do tariffs affect businesses?
8. Do tariffs help or hurt consumers?
9. How would you explain tariffs to a student?
10. What trade policy do you support?
Vocabulary
Instruction: Repeat after your teacher.

Protectionism (pruh-TEK-shuh-niz-uhm) /prəˈtɛkʃənɪzəm/
Type: noun
Meaning: limiting trade to protect local industries
Synonyms: trade restriction, isolationism
Example: Protectionism can disrupt global markets.
Task: Use this word in a policy or economic discussion.

Supply chain (suh-PLY CHAYN) /səˈplaɪ tʃeɪn/
Type: noun
Meaning: system of producing and delivering goods
Synonyms: distribution network, logistics chain
Example: Tariffs can disrupt the global supply chain.
Task: Explain how tariffs affect supply chains.

Economic leverage (ek-uh-NOM-ik LEV-er-ij) /ˌɛkəˈnɒmɪk ˈlɛvərɪdʒ/
Type: noun phrase
Meaning: power to influence economic decisions
Synonyms: bargaining power, influence
Example: Tariffs are used as economic leverage.
Task: Give a real-world example of economic leverage.
Idioms / Phrasal Verbs
Instruction: Read and understand the expressions.

push up – cause to increase
Example sentence: Tariffs can push up consumer prices.

hit back – respond strongly
Example sentence: Trading partners hit back with tariffs.

slow down – reduce speed or activity
Example sentence: Trade disputes slow down growth.
Article Reading
Instruction: Read carefully and focus on key ideas.

US tariffs reflect a broader trend toward protectionism in global trade policy. By taxing imported goods, governments aim to support domestic industries, but these measures often carry wider economic consequences. Tariffs can disrupt supply chains, increasing costs for manufacturers that rely on foreign components. Businesses may pass these costs on to consumers or delay investment decisions, adding uncertainty to global markets. Trade partners frequently respond with retaliatory measures, intensifying disputes and reducing overall trade. Economists argue that while tariffs may offer short-term protection, prolonged trade tensions risk weakening growth, raising inflation, and damaging international cooperation.

Comprehension
Instruction: Answer the questions based on the article.

1. Why do governments use protectionism?
2. How do tariffs disrupt supply chains?
3. Why do global markets react to tariff news?
4. Why must policymakers balance interests?
5. What long-term effects can tariffs cause?
Speak Up
Instruction: Respond thoughtfully using advanced vocabulary.

1. Are tariffs effective long-term trade tools?
2. Should economic leverage be used in diplomacy?
3. Do tariffs promote fairness or conflict?
4. How do tariffs shape global power dynamics?
5. Should protectionism be limited?
6. How can trade disputes be resolved?
7. What role should global institutions play?
8. How do tariffs affect developing countries?
9. What ethical issues arise from trade wars?
10. What trade policy would you recommend?
Source: BBC Business – US tariffs and global trade policy