Business FAQ

Question 1

Who actually pays a trade tariff?

Accepted Answer

A U.S. tariff is paid by the importer of record, usually an American business, which pays the duty to U.S. Customs and Border Protection when goods enter the country. The foreign exporter does not pay it directly. Importers can absorb the cost or pass some or all of it on through higher prices, and foreign suppliers sometimes cut their prices to stay competitive.

Question 2

What types of tariffs are there?

Accepted Answer

The main types are ad valorem tariffs, charged as a percentage of a product's value; specific tariffs, a fixed amount per unit such as per ton or per item; and compound tariffs, which combine the two. Tariff-rate quotas charge a lower rate up to a set quantity and a higher rate beyond it. Governments also impose antidumping, countervailing and retaliatory duties.

Question 3

What are retaliatory tariffs?

Accepted Answer

Retaliatory tariffs are import taxes a country imposes in response to another country's tariffs or trade actions, often aimed at politically or economically sensitive products. When the United States raised tariffs in 2025, trading partners including Canada and China answered with duties on American goods, which raise costs for U.S. exporters, farmers and manufacturers selling into those markets.

Question 4

When were tariffs imposed in the US?

Accepted Answer

Tariffs are as old as the federal government. The Tariff Act of 1789, signed by President George Washington, was one of the first laws Congress passed, and tariffs supplied most federal revenue until the income tax took hold after 1913. Recent U.S. tariffs include duties on steel and aluminum since 2018 and the broad tariffs President Trump began imposing in 2025.

Question 5

What is the total national debt right now?

Accepted Answer

The total U.S. national debt passed $40 trillion in August 2026. Treasury data showed $40.047 trillion as of August 18, made up of about $32.3 trillion held by the public and $7.8 trillion in intragovernmental holdings owed to federal trust funds. The Treasury publishes the exact figure every business day in its Debt to the Penny dataset.

Question 6

Who owns the U.S. national debt?

Accepted Answer

Most U.S. debt is owned by Americans. Roughly four-fifths is held by the public, including the Federal Reserve, banks, mutual funds, pension funds, state and local governments and individual investors, along with foreign investors, who hold close to a third of all Treasury securities. The rest, about $7.8 trillion, is owed to federal trust funds such as Social Security. Japan is the largest foreign holder.

Question 7

Did Bill Clinton pay off the national debt?

Accepted Answer

No. The federal government ran budget surpluses from fiscal 1998 through 2001 and used them to pay down part of the debt held by the public. Total gross debt still rose during President Clinton's two terms, from about $4.2 trillion to $5.7 trillion, because Social Security and other trust funds kept accumulating government securities.

Question 8

What is the difference between a trade deficit and a national debt?

Accepted Answer

They measure different things. A trade deficit is the amount by which a country's imports of goods and services exceed its exports over a period. The national debt is the total the federal government has borrowed and not repaid, built up from years of budget deficits. The United States has run both for decades, but a trade deficit does not add to government debt.

Question 9

When was the last U.S. trade surplus?

Accepted Answer

The United States last recorded an annual trade surplus in 1975, when exports of goods and services exceeded imports. It has run a deficit every year since, according to Census Bureau and Bureau of Economic Analysis data. The goods deficit is partly offset by a surplus in services, such as financial services, travel and intellectual property.

Question 10

How much does jet fuel cost now?

Accepted Answer

U.S. jet fuel hit a record in October 2026. The average U.S. price reached $4.90 a gallon on October 22, the highest single-day average ever recorded by the price-tracking firm Argus. Airlines pass fuel costs through to fares, and holiday tickets were running 20% to 30% above the previous year. The U.S. Energy Information Administration also publishes weekly jet fuel prices.