To determine who bears the economic burden of the tariffs that President Trump has enacted on various countries, such as China, Mexico, and Canada, look no further than your own wallet. Contrary to popular belief, it is American taxpayers who ultimately foot the bill for these increased tariffs.

The impact of tariffs goes beyond the prices of imported goods, extending to American-made products as well. When prices rise for imported items, American consumers end up paying more not only for those goods but also for domestic alternatives that see price hikes in response.

Understanding tariffs and international trade can be complex, so it’s essential to grasp the basics to comprehend the economic implications and assess the viability of tariffs as a strategy.

Tariffs, essentially taxes on imports, serve as both a source of revenue and a method to manage trade. For instance, a 2.5 percent import tariff on foreign cars means that when an American buys a $100,000 imported vehicle, they must pay an additional $2,500, totaling $102,500.

Importantly, it is the individual making the purchase who covers the cost of the tariff, not the country where the product originated. This applies not only to goods produced abroad but also impacts U.S. manufacturers sourcing components or materials from tariffed countries, prompting them to raise prices and causing an overall price increase across the board.

It is crucial to recognize the significance of tariffs as they can have far-reaching consequences, acting as economic weapons during trade disputes. When tariffs are imposed, retaliatory actions by other countries can lead to increased prices for American consumers and hinder the export opportunities for certain American industries, such as agriculture.

The financial implications of tariffs can be substantial. For instance, Trump’s proposed universal tariffs on U.S. imports could result in an added cost of approximately $9,500 per taxpayer each year. Considering that many Americans lack the financial reserves to tackle significant unexpected expenses, the impact of tariffs on households can be significant.

While the merits of trade wars can be debated endlessly, it is evident that Trump intends to pursue this strategy, empowered by Congress to impose tariffs. Instead of downplaying the seriousness of tariffs, it is crucial for the administration to be transparent about the implications and refer to the situation as what it truly is – a trade war. Providing the public with a clear understanding of both the risks and benefits can enable individuals to make informed decisions regarding their support for this approach.

Transparency is key as Americans must comprehend the short-term sacrifices associated with tariffs to appreciate the potential long-term gains. If Trump continues to utilize tariffs as a tool, it is imperative for him to communicate effectively to rally public support, showcasing a united front to endure immediate challenges for the promise of future prosperity.

Liberty Vittert is a professor of data science at Washington University in St. Louis and serves as the resident on-air statistician for NewsNation, a companion company of The Hill.