President Donald Trump’s favorite economic tool is the tariff. Tariffs are a tax on imports, products brought into the United States from foreign countries. In his first day in office, he said he planned to slap a 25% tariff on imports from Canada and Mexico. More are probably coming. Like other taxes, tariffs can raise money for the government. They can protect U.S. industries from foreign competition. They can punish other countries for unfair trade behavior. Most economists don’t favor the widespread use of tariffs. They say tariffs push prices higher and can lead to inefficiency. Consumers also don’t buy the best product -- they buy the one that costs less because it hasn’t been hit with a tariff. When domestic businesses are protected by tariffs, they can get lazy and fail to innovate. President Trump claims that foreign countries pay the tariffs, but they are actually paid by companies in the U.S. that buy foreign products and bring them into the country -- everything from smartphones to Christmas ornaments. Those importers can then pass along the cost by raising prices. Which means that ordinary Americans can end up footing the bill. Tariffs do hurt foreign competitors, too. They might be forced to cut prices – and sacrifice profits -- to offset the tariff. If they don’t, they could lose market share in the American market. In the 1800s, tariffs accounted for most federal taxes. President Trump wants to return to those days, but it would be difficult if not impossible. Government is much bigger than it was 150 years ago – including big budget items such as Social Security and Medicare.