Tariffs, essentially taxes on imported goods, have been at the core of cross-border trade since the days of ancient Athens and Mesopotamia. They can protect domestic industries, generate revenue, or act as political tools. For journalists, tariffs often provide a clear, tangible hook to explain the much broader and more complex web of international commerce or the realities of geopolitical machinations.
Since 2018, tariff policy has returned to the center stage of global affairs, catalyzed by U.S. efforts to rebalance trade relationships under Presidents Donald Trump and Joe Biden. As governments rethink the rules of globalization, reporters who previously had not been trade experts are being asked to cover this highly specialized area of business journalism. Those covering trade must understand not only how tariffs work, but also how they ripple across economies and affect everything from supply chains to consumer prices to jobs and wages.
"Covering trade isn’t just about understanding the world economy; it’s about decoding the interconnected human stories at the heart of today's world,” said Wang Feng, editor-in-chief at FTChinese.com in Hong Kong and a visiting professor of business journalism at Tsinghua University in Beijing. “This year has underscored the profound relevance of global trade and supply chains like never before.”
For the benefit of trade reporting veterans and newbies alike, here is a guide to tariffs and how to cover them:
What are tariffs, and how do they work?
A tariff is a tax or duty imposed by a government on imported goods. It makes those goods more expensive at the border, typically to protect domestic industries, raise government revenue, or influence foreign government behavior.
Tariffs are usually calculated as a percentage of the item’s declared value (called ad valorem tariffs) or as a fixed fee per unit (called specific tariffs).
How tariffs work in practice
(1) A product is imported.
Let’s say a U.S. company imports $1 million worth of solar panels from China.
(2) The tariff is applied.
If there’s a 25% tariff, the importer must pay $250,000 to U.S. Customs and Border Protection (CBP).
(3) The cost is passed along.
The importer will usually raise prices to cover the tariff. The higher price may be borne by:
- U.S. businesses that use the product (like builders)
- U.S. consumers (via retail prices)
- Or foreign exporters who cut their prices to stay competitive
(4) The government collects the tariff.
These payments go into the country's treasury. In the U.S., they're collected by CBP and reported monthly.
Example: Let’s say Nike imports sneakers from Vietnam that normally cost $50/pair. If the U.S. imposes a 10% tariff on those shoes:
- Tariff paid = $5/pair
- New cost = $55/pair (if Nike passes on the full cost)
- Result: Nike passes along the added costs by increasing retail prices, accepts smaller profit margins, sources from another country, or lobbies for a tariff exemption. Consumers will either pay more for a tariff-hit product, search for a lower-priced competitor or delay planned purchases.
Why governments use tariffs
Goal: Protect local industries
Example: Steel tariffs to support domestic mills against cheap imports
Goal: Retaliate or punish
Example: Tariffs on Chinese tech goods after alleged theft of intellectual property
Goal: Balance trade
Example: Tariffs to reduce large trade deficits (e.g., U.S.–China)
Goal: Promote national security
Example: Section 232 tariffs on steel/aluminum for “defense readiness”
Goal: Encourage reshoring
Example: Making imports expensive to incentivize local production
The evolution of tariffs
- 19th Century: Tariffs were the primary source of government revenue. The U.S. used tariffs to protect its infant industries. So did Germany, Britain, and Japan during their industrial ascents.
- Post-WWII: The creation of GATT (General Agreement on Tariffs and Trade) marked a global push for tariff reductions and multilateral cooperation. Income taxes became the primary source of government revenue.
- 2000s–2010s: The World Trade Organization (WTO) era emphasized tariff “bindings,” or the maximum upper bound rate a member nation could set, and dispute resolution. Trade wars were rare, and most tariffs trended downward.
- 2018–2024: The U.S. administration under President Trump imposed sweeping tariffs on steel, aluminum, and hundreds of billions of dollars in Chinese goods, triggering retaliation and a resurgence of tariff diplomacy. President Biden, his successor, maintained most of the Trump tariffs and added some of his own.
- April 2025: With Trump back in office, the U.S. imposes steep tariffs on trading partners, roiling the global free trade system that had been in place for decades. The "Liberation Day" tariffs, aimed at reviving U.S. manufacturing, are led by a 104% tariff against China, later climbing as high as 145% amid a retaliatory spiral.
Common terms to know
- Ad valorem tariff: Charged as a percentage of the import’s value
- Specific tariff: Charged as a set dollar amount per unit
- MFN rate: “Most Favored Nation” tariff applied equally to WTO members
- Tariff-rate quota (TRQ): Low tariff for imports up to a certain volume, higher tariff after
- Dumping: Selling goods below cost to capture market share
- Anti-dumping duty: Extra tariff imposed to counteract dumping
- Countervailing duty (CVD): Extra tariff to offset foreign subsidies
Key data sources
- WTO Tariff Database: Find bound vs. applied tariff rates by country.
- U.S. International Trade Commission (USITC): Tariff lookup tool for import duties by HS code.
- USTR Section 301 Reports: Explain rationales for punitive tariffs, especially on China.
- Customs data: National statistics portals (e.g., China Customs, Eurostat) to gauge the impact of tariffs on trade volumes.
- Commercial and other platforms: Panjiva, ImportGenius, and PIERS show how companies respond to tariff changes.
Tip: You can track tariffs and tariff revenue in real time. Match new tariffs to monthly import/export data to spot economic pain points and story leads.
Who to call for tariff stories
In the government:
- Trade policy officials: From ministries or offices like the USTR (U.S.), MOFCOM (China), Directorate General for Trade (EU).
- U.S. Customs and Border Protection (CBP): Often first to enforce new tariffs and assess compliance.
- Politicians and advisors: Hill aides or political staff with influence over trade strategy.
In the private sector
- Affected companies: Manufacturers, retailers, and importers are usually vocal about tariff costs.
- Industry associations: e.g., National Retail Federation, American Iron and Steel Institute, Semiconductor Industry Association.
- Trade compliance lawyers and consultants: Specialists who help businesses adapt to new rules.
- Economists and think tanks: Many track the economic effects of tariffs on inflation, growth and jobs.
Pro tip: Ask companies for their tariff mitigation strategies. That’s where you’ll find rich narrative detail, including rerouted supply chains, reshored production, or price hikes.
Story ideas
Story hook: How a tool once associated with protectionism has become central to 21st-century great power competition.
Story hook: What can we learn from Donald Trump’s comparison of himself to William McKinley, the American politician who championed high tariffs as an Ohio congressman and president from 1897 to 1901?
Story hook: The resurgence of industrial policy as governments “pick winners” rather than letting the free market work its wisdom.
Story hook: The decline of the WTO and the post-World War II international architecture amid the rise of China, the chaos of Trump, and the calculated actions of Putin.
Story hook: Which of the reasons why governments use tariffs are the most important ones in the current trade war? How many may be self-defeating?
Story hook: Why do so many economists hate tariffs and so many politicians seem to love them?
Quantitative analysis stories
Use before-and-after comparisons to measure impact.
- Example: Did steel imports from China drop after the implementation of Section 232 tariffs? Did prices for washing machines rise?
Tools
- U.S. Census Bureau trade data
- Bureau of Labor Statistics Producer Price Index (PPI) and Consumer Price Index (CPI); (to track consumer and producer prices)
- Company earnings reports (tariff mentions)
Ground-level reporting
Talk to people directly affected by specific developments:
- Factory workers at firms affected by retaliatory tariffs
- Farmers cut off from overseas markets
- Importers facing long customs delays
Narrative tip: Pair a quote with data — “We laid off 50 workers,” said John, whose plant saw orders plunge 30% after tariffs on auto parts.
Investigative reporting
Explore the winners:
- Who lobbied for tariffs and why?
- Were exceptions granted to some firms?
- Did tariff policies benefit politically connected companies?
Freedom of Information Act requests and lobbying records in the U.S. can be great starting points here.
How to write your tariff stories
Example
Headline:
The news, with the most important information first:
U.S. Tariffs Spark Drop in China Imports as Trade Deficit Shrinks
Lede:
The first paragraph expands on the news contained in the headline, with sourcing.
U.S. imports from China plunged in the first quarter after new tariffs imposed by the Trump administration kicked in, signaling that an escalating trade war was reshaping supply chains. At the Port of Los Angeles, which, along with the Port of Long Beach, receives roughly 40% of all imports from Asia, shipments in late April were down 10% compared with the same period one year earlier, according to CBS News.
Supporting paragraph:
Additional information that supports the news in the lede.
Imports of cars, steel and electronics slumped in the three-month period, while exports of agricultural products also slowed as China and other countries responded with tariffs of their own.
Nut graf:
Use this paragraph, high up in your story, to provide context to the news.
The data comes as the White House prepares for another round of talks with Beijing. While officials argue tariffs are correcting unfair practices, critics say they are driving up costs for U.S. firms and consumers and are unlikely to boost domestic manufacturing in the short term.
Lead quote:
A key quote obtained from your reporting.
“We’re already seeing signs of a consumer pullback as prices rise,” said John Smith, CEO of supply chain firm XYZ Corp. “These trade numbers will do nothing for confidence."
Body:
- Specific tariffs (e.g., 25% on electronics)
- Data on import volumes
- Reaction from a CEO and other quotes
- Policy outlook
Close with a forward look, preferably with a “kicker” quote:
“A new round of tariffs is set to take effect in July, potentially targeting over $100 billion in imports,” XYZ’s Smith said.
Story ideas on tariffs
- China–U.S. trade tensions 2.0: Will tariffs return in an election year? Who’s winning?
- Tariffs and inflation: Are trade taxes fueling price pressures? Do consumers understand how the prices they pay are connected to tariffs?
- Tariff evasion schemes: Follow the shell companies and transshipment tactics.
- New targets: Semiconductors, electric vehicles (EVs), green tech — what’s in the crosshairs next?
- Tariffs as leverage in diplomacy: What happens when economics is weaponized?
Data-driven investigation ideas
(1) The Hidden Tariff War: How Emerging Markets Are Rewriting the Rules
- Angle: While U.S.-China-EU tariff battles dominate headlines, dozens of countries in emerging markets may adjust their tariffs aggressively, sometimes raising protectionist walls, other times slashing rates to attract foreign investment.
- Key data sources: WTO Tariff Profiles, UN Conference on Trade and Development Trade Analysis, World Bank World Integrated Trade Solution (WITS) database
- Visuals: Heat maps of tariff changes by country over the past five years; country-level timelines of the most significant changes
Why it matters: Helps investors and exporters understand shifting market access beyond the U.S.-China-EU lens.
(2) Agriculture Under Siege: The Countries Paying the Highest Price to Feed Themselves
- Angle: With rising food insecurity, many countries have increased import tariffs on agricultural goods to protect local farmers, but the cost is hitting consumers hard.
- Key data sources: FAO, WTO, national customs databases (India, Indonesia, Egypt, Nigeria, etc.)
- Visuals: Bar charts of average applied agriculture tariffs; comparative analysis of food price inflation vs. tariff hikes
Why it matters: Shows the unintended consequences of tariff policy on inflation and poverty.
(3) Tariffs and the Green Transition: Who’s Taxing Carbon-Intensive Imports?
- Angle: A growing number of countries (e.g., the EU with the Carbon Border Adjustment Mechanism or CBAM) are introducing tariffs or fees tied to the carbon intensity of imports. Who’s leading? Who’s resisting?
- Key data sources: European Commission CBAM filings, national trade policy reports, CBAM energy tracker (OECD)
- Visuals: Line graphs showing growth of green tariffs; table of trade partners most affected
Why It Matters: Essential for energy and manufacturing investors assessing environmental, social and governance (ESG) risk and cross-border trade costs.
(4) The Tariff Illusion: Where Trade Duties Are Falling, Non-Tariff Barriers Are Rising
- Angle: In some countries, average tariff rates are dropping, but importers face a growing wall of inspections, licensing requirements, and safety checks, an example of governance risk in ESG.
- Key data sources: World Bank Doing Business reports, WTO trade policy reviews, OECD Trade Facilitation Indicators
- Visuals: Comparative chart of tariff rates vs. non-tariff barrier indices over time
Why it matters: Warns that a low-tariff headline may obscure deeper access challenges.
Final takeaways
- Tariffs are no longer dull economic levers, they’re front-line tools in political and strategic conflict.
- Always dig for intent (why the tariffs?), impact (who pays and how much?), and consequence (what shifts or escalates as a result?).
- Keep your stories timely, well-sourced, and data-rich, and you'll not only inform your readers, you’ll help shape the debate.
“My students are analyzing the complexities of tariffs, technology conflicts, and economic statecraft — not just as academic and journalism subjects, but as forces reshaping their own families’ livelihoods, their career prospects, and even the cost of a butter tea on campus,” Tsinghua University’s Wang said in an interview.
This piece was produced in collaboration with the Global Business Journalism program at Tsinghua University. The program is a partnership between ICFJ, Tsinghua University and Bloomberg News.
Photo by Markus Winkler via Pexels.
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