Read Time: 3 min 43 sec
─────── October 18, 2025 ───────
Happy Saturday!
This week, we reported that President Trump’s eyeing new tariffs. After China announced new export controls on rare-earth minerals, #47 floated a 100% tariff on Chinese imports along with export limits on “critical software.”
If your eyes are glazing over, stick with us! Today, we’re explaining tariffs.
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QUOTE OF THE DAY
“God is concerned not only with the posture of our hearts but also with the people on each of our arms. In terms of fulfilling our mission in this life, we can’t do anything worthwhile alone.”
Jennie Allen
BREWING QUESTIONS
WHAT YOU’RE ASKING
How do tariffs work?
Y’all ever used DoorDash? A $10 burger turns into a $23 burger by the time it crosses your doorstep, but the burger isn’t any bigger... and you think to yourself, “Self, next time we can save money by doing this the homemade way.”
Consider that your first lesson in tariffs.
Well, now I’m just hungry.
Hold your horses. 🐴 There’s more to learn!
Tariffs are taxes on imported goods. There’s…
Ad Valorem Tariffs: percentage-based (e.g., a 20% tax on anything imported from Taiwan)
Specific Tariffs: fixed fees imposed on physical units (often used on commodities where the price is constantly changing, like $10 per barrel of oil)
Compound Tariffs: a combination of ad valorem and specific
All tariffs are taxes paid by importers to the local government.
For example, imagine the U.S. has a 50% tariff on goods from China (purely hypothetical). If an American company imports a $1,000 Labubu Doll from China, it will also have to pay $500 to the U.S. government ($1,500 total). The company can either absorb that $500 tax or pass the price hike along to its consumers… but someone’s gotta pay it.
Why do governments impose tariffs?
There are three main reasons:
Revenue generation (tariffs generated ~50% of Uncle Sam’s revenue before 1913)
Protection of domestic industries (increasing the cost of foreign goods incentivizes buying local)
Leverage in foreign relations (pressuring other countries through their export biz)
When we hear about tariffs in the headlines these days, it’s mostly #3, with some #2 and #1 sprinkled in. (Check Uncle Sam’s current tariffs here.)
Why do critics dislike tariffs?
By design, tariffs make the market less efficient and raise prices for consumers.
Back in 1913, the U.S. moved away from its tariff-focused tax system in favor of the current income tax system because tariffs disproportionately affected lower-income consumers (they spend a larger share of their income on basic goods, many of which are imported).
Want to hear more about tariffs? Today’s episode of the TPO Explains podcast is for you!
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ETERNAL PERSPECTIVE
Our response to things beyond our control (such as economic negotiations between governments) should reflect our faith in Christ and encourage others. In the face of uncertainty and change, seek to reflect the peace of God, which surpasses understanding.
“What does the LORD your God ask of you except to fear the LORD your God by walking in all his ways, to love him, and to worship the LORD your God with all your heart and all your soul? Keep the LORD’s commands and statutes I am giving you today, for your own good.”
Deuteronomy 10:12–13 (CSB) (read full passage)
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HOUSE BLEND
WHAT YOU’LL ENJOY
The bluest of (ocean) blues...
Versify, the completely free app built by brother-and-sister TPO readers, Richie and Alyssa T., that helps you memorize Scripture (in the translation of your choice) to keep it written on your heart. Download it now!
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WHAT YOU’VE BEAN CLICKING…
Top News Article: This video of hostages being freed
Top Christian Perspective: A reminder that the promise of Heaven does not remove the pains of this world, but it does give us hope, strength, and peace during life’s most difficult seasons. (Download this as a wallpaper here!)
Top Whipped Cream: The world's looongest swim practice...
TAKE IT TO GO
What We’re Drinking
When we had to stay an extra day in the hospital after our second daughter was born, my wife, Hannah, asked me to swing by the house and do two things:
Check on our 2-year-old (who was thriving with Nana and Papa)
Grab more Raspberry LMNT
I’m suspicious that the list wasn’t in order of priority.
LMNT has the perfect, science-backed electrolyte ratio, which means lots of salt and zero sugar. The benefits of healthy hydration (and raspberry flavor) have proved addictive for my wife, who has one every single day.
Order today and get a free 8-pack of LMNT’s most popular drink mix flavors.
Jason Woodruff | Founder
*From our partners
WHAT WE’RE PRAYING
King of Creation, the global economy sits far outside our control. We long for security, but we can’t guarantee it. We seek prosperity, but it’s fickle. But you need nothing from anyone. All things come from you, and all things are owed to you.
When world leaders compete for the better end of the deal, empower your people to model sacrificial love and generosity. When economic policies threaten the vulnerable, provide for their every need. When we’re gripped by fear of an uncertain future, teach us to seek your kingdom today and trust you for tomorrow.
This prayer is adapted from our new Sunday newsletter, Praying the News. For more reflection and a prayer for the global economy in your inbox tomorrow, subscribe for free here.
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