Students learn a lesson about how tariffs work, how they impact prices and consumers, and how government policies influence economic decision-making and financial outcomes.
CONCEPTS
Use this video lesson to explore current events related to tariffs. Learn basic related concepts of
- Economic Decision-Making
- Taxes and Policy
- Consumer Prices
- Income
- Income and Spending
- Spending and Saving
- Government Revenue
- Business Costs
- Market Impacts
- Financial Responsibility
GRADE LEVEL
Grades 9-12 (High School) and Adult Education.
TIME REQUIRED
30-45 minutes, adjustable based on student needs and interests. More in-depth lesson plan below will be longer.
PROCEDURE
Hand out the worksheet below (see the GET LESSON button near the bottom of the page).
Show students the video and have them complete the worksheet. Review the questions on the worksheet. For a more in-depth lesson, complete the lesson plan below.
Trump’s New 15% Tariffs – Who Really Gets the Money?
After watching the video, ask students to summarize the main points made in the video. Encourage students to highlight key concepts and discuss them in small groups before sharing with the class.
Grade Level: High School (11th–12th) or Introductory College Economics
Subject Area: Economics / Government / Public Policy
Duration: 60–75 minutes
Objective:
- Students will understand what tariffs are and how they function.
- Students will analyze who ultimately bears the cost of tariffs.
- Students will evaluate the legal and economic implications of recent tariff policies.
- Students will critically assess fairness and real-world impacts on consumers and businesses.
Materials Needed:
- Video: “Trump’s New 15% Tariffs – Who Really Gets the Money?”
- Whiteboard or projector
- Student handouts (summary + discussion questions)
- Access to quiz (online or printed)
Lesson Overview:
This lesson introduces students to tariffs as both an economic tool and a public policy issue. Using the provided video, students will explore how tariffs impact businesses, consumers, and government revenue, and examine the legal challenges surrounding recent tariff policies.
Warm-Up Activity (5–10 minutes):
- Ask students: “Have you ever bought something and later realized there was a hidden cost?”
- Have students briefly share examples (sales tax, fees, subscriptions, etc.).
- Connect responses to the idea that tariffs can act like “hidden costs” in everyday prices.
Video Viewing (10–15 minutes):
- Play the video: “Trump’s New 15% Tariffs – Who Really Gets the Money?”
- Ask students to take notes on:
- What tariffs are
- Who pays tariffs initially
- Who ultimately bears the cost
- What happens to tariff money
Direct Instruction & Key Concepts (10–15 minutes):
- Definition of Tariffs: A tax on imported goods paid by importers.
- Cost Pass-Through: Businesses often pass tariff costs to consumers through higher prices.
- Government Revenue: Tariffs generate federal income.
- Legal Authority: The Constitution gives Congress the power to impose taxes, including tariffs.
- Supreme Court Ruling: Some tariffs were ruled invalid due to misuse of emergency powers.
- Refund Process: Refunds go to companies (importers), not directly to consumers.
- New 15% Tariffs: Introduced under a different law (Section 122), possibly temporary and legally uncertain.
Group Activity (15–20 minutes): “Follow the Money”
- Divide students into small groups.
- Each group creates a flow chart showing:
- Who pays tariffs first
- How costs move through the economy
- Who ends up paying
- Who gets refunds (if applicable)
- Have groups present their flow charts to the class.
Discussion Questions (10–15 minutes):
- Why do tariffs often lead to higher prices for consumers?
- Do you think tariffs are a “hidden tax”? Why or why not?
- Is it fair that companies receive refunds instead of consumers? Explain your reasoning.
- What are the potential benefits of tariffs for domestic industries?
- What are the downsides of tariffs for everyday people?
- Why might the government continue using tariffs even if they face legal challenges?
- How does uncertainty in trade policy affect businesses and the economy?
- If you were a policymaker, how would you change the tariff system (if at all)?
Critical Thinking Extension (Optional Homework or In-Class):
- Write a short paragraph answering: “Who really benefits from tariffs, and who is most affected?”
- Encourage students to use examples from the video.
Assessment: Video-Based Quiz
Students will complete a separate quiz based on the video content. The quiz should include:
- Multiple choice questions (e.g., definition of tariffs, who pays them)
- Short answer questions (e.g., explain cost pass-through)
- Scenario-based questions (e.g., what happens if tariffs are refunded?)
Sample Quiz Questions:
- What is a tariff?
- Who pays tariffs at the border?
- Who typically bears the cost of tariffs in the long run?
- What did the Supreme Court rule about certain tariffs?
- Who is most likely to receive refunds if tariffs are overturned?
- What is the purpose of the new 15% tariff policy?
Closing Reflection (5 minutes):
- Ask students: “What surprised you most about how tariffs actually work?”
- Have a few students share responses.
- Reinforce the key takeaway: tariffs may seem like they target foreign countries, but their effects are often felt domestically.
Key Takeaway:
Tariffs are not just international policy tools, they directly impact businesses, consumers, and government revenue. Understanding how money flows through the system helps explain why prices change and who ultimately benefits.
Lesson Resources
LESSON WORKSHEET
Worksheet includes multiple choice quiz.
