Suppose, for example, that the U.S. government levied a new 10% tariff on cars imported from Japan. The tariff would push the price of a $50,000 Japanese vehicle to $55,000. So because the ...

President Donald Trump has been talking about tariffs for so long that it feels like we know exactly what’s coming. But we kind of have no idea.

These tariffs are calculated as a percentage of the value of imported goods, which makes them adaptable to price fluctuations. Here are some typical examples of ad valorem tariffs: Ad valorem ...