Only 45 Percent of Americans Know What a Tariff Is

A survey conducted by market research specialist Ipsos in December 2024 shows that more than half of all polled U.S. adults don't know what a tariff is. Only 45 percent chose the correct answer, which is a form of tax imposed on imports from other countries paid by the importing companies and is at least in part passed on to the consumer. A narrative popularized by President Trump that suggests that the exporting country pays a tax to the importing country was the second most popular option, chosen by 17 percent of respondents.

Other possible answers included a trade agreement between countries that would enable one country to impose fees on a partner country exceeding specific trade limits and subsidies paid to domestic producers by consumers. 23 percent or almost a quarter of respondents admitted not knowing what the correct definition of a tariff is.

Discussions around tariffs have dominated President Trump's economic vision on his campaign trail and the first weeks of his administration. Most recently, President Trump clarified which products he would most likely want to impose tariffs on pharmaceuticals, semiconductors and steel and related industries, according to an address given to House Republicans reported on by CNN. In terms of the financial scope of said tariffs, President Trump mentioned various percentages over the past months, most recently upwards of ten percent on goods imported from Canada, Mexico and China.