How do Trump's recent tariff announcements work and what impact might they have on the U.S. economy and markets?

Tariffs function as taxes on imported goods that are paid by businesses and typically passed on to consumers, potentially leading to price increases. Market reactions have been mixed, with initial relief after Trump's Oval Office announcement causing stocks to rise, though futures later declined as uncertainty persisted about the actual implementation. The tariffs are viewed by some experts as sophisticated negotiating tactics rather than definitive policy. Trump's approach of matching other countries' tariffs, rather than implementing universal tariffs, may reduce global trade uncertainty. A Commerce Department study due April 1st will inform final decisions, with potential tariff implementation starting April 2nd. If successful as negotiation tools, these tariffs could prompt other countries to proactively lower their own trade barriers, potentially boosting foreign investment in the U.S. and creating new jobs, though the outcomes remain uncertain.